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Fibre2Fashion
7 days ago
- Business
- Fibre2Fashion
Retail trade body AIR urges UK govt to reinstate tax-free shopping
The Association of International Retail (AIR) recently urged the UK government to reinstate tax-free shopping, which was cancelled in 2021 after Brexit. The association wants the tax-free shopping programme to be part of the new Visitor Economy Growth plan, being drawn up by the department for culture, media and sport. AIR has urged the UK government to reinstate tax-free shopping, which was cancelled in 2021 after Brexit. It wants the tax-free shopping programme to be part of the government's new Visitor Economy Growth plan. Reinstating tax-free shopping would bring £3.7 billion (~$5.02 billion) to the economy annually, benefit high streets and make Britain the global shopping capital, AIR argues. Reinstating tax-free shopping would bring £3.7 billion (~$5.02 billion) to the economy every year and turn Britain the global shopping capital, AIR argues. In a submission to the Visitor Economic Advisory Council, AIR asked for creating a 'world-beating' new value-added tax (VAT)-free shopping scheme that would favour all international visitors. It also argued that Britain could be the only large European country offering VAT-free shopping to the 450 million EU residents, now that the United Kingdom is no longer part of the EU. Such a decision could also turn Britain as the top choice for retail investors, it observed. Britain's high streets would benefit, with additional foreign spending and investment helping to revitalise town and city centres across the country at a time of increasing costs and competition, AIR added in its submission. Fibre2Fashion News Desk (DS)
Time of India
23-07-2025
- Business
- Time of India
UK retailers demand return of tax-free shopping for tourists
UK retailers are renewing efforts to persuade Chancellor of the Exchequer Rachel Reeves to bring back tax-free shopping for tourists , as the government prepares to set out its plan to boost the so-called visitor economy. Making purchases exempt from VAT could result in £3.65 billion ($4.9 billion) of additional spending by visitors from the European Union, the Association of International Retail said in a submission to ministers published Tuesday. That's on top of about £1.5 billion of spending by non-EU visitors the lobby group said was diverted from the UK when it scrapped tax-free shopping in 2021. The report sent to the Department for Culture, Media and Sport is the latest salvo in a long tussle between retailers and the government. Then Chancellor of the Exchequer Rishi Sunak used the UK's exit from the EU as a chance to end a system that let travelers reclaim the 20 per cent VAT sales tax on their purchases. Since then, Conservative and Labour governments — with the exception of the short-lived administration of former Prime Minister Liz Truss — agreed with Sunak's assessment that the policy cost the Treasury more than it gained. Subsequent analysis by the Office for Budget Responsibility backed that view. Reeves faces a fiscal shortfall heading into this year's autumn budget, after expensive U-turns on welfare cuts and amid reduced prospects for growth. That makes any change to her stance on tax-free shopping less likely, even as she faces calls to help companies after she raised payroll taxes this year. But British retailers argue they have lost out to countries like France and Spain that offer tax-free shopping to non-EU visitors, and have repeatedly put forward the argument that the Treasury is not taking into account the wider uplift in spending in considering the impact of the policy on the public coffers. Hundreds of retailers including Mulberry Group Plc, Fortnum & Mason Plc and John Lewis signed an open letter to Reeves last year calling for the government to reinstate the policy. According to the Association of International Retail, the UK would become the only country in Europe offering VAT rebates to 450 million EU consumers. It also cited figures showing visitor spending in the UK was 92 per cent of 2019 levels last year, compared with 106 per cent in Spain and 110 per cent in France.
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Business Standard
22-07-2025
- Business
- Business Standard
Will UK bring back tax-free shopping? What retailers demand from govt
UK retailers are renewing efforts to persuade Chancellor of the Exchequer Rachel Reeves to bring back tax-free shopping for tourists, as the government prepares to set out its plan to boost the so-called visitor economy. Making purchases exempt from VAT could result in £3.65 billion ($4.9 billion) of additional spending by visitors from the European Union, the Association of International Retail said in a submission to ministers published Tuesday. That's on top of about £1.5 billion of spending by non-EU visitors the lobby group said was diverted from the UK when it scrapped tax-free shopping in 2021. The report sent to the Department for Culture, Media and Sport is the latest salvo in a long tussle between retailers and the government. Then Chancellor of the Exchequer Rishi Sunak used the UK's exit from the EU as a chance to end a system that let travelers reclaim the 20% VAT sales tax on their purchases. Since then, Conservative and Labour governments — with the exception of the short-lived administration of former Prime Minister Liz Truss — agreed with Sunak's assessment that the policy cost the Treasury more than it gained. Subsequent analysis by the Office for Budget Responsibility backed that view. Reeves faces a fiscal shortfall heading into this year's autumn budget, after expensive U-turns on welfare cuts and amid reduced prospects for growth. That makes any change to her stance on tax-free shopping less likely, even as she faces calls to help companies after she raised payroll taxes this year. But British retailers argue they have lost out to countries like France and Spain that offer tax-free shopping to non-EU visitors, and have repeatedly put forward the argument that the Treasury is not taking into account the wider uplift in spending in considering the impact of the policy on the public coffers. Hundreds of retailers including Mulberry Group Plc, Fortnum & Mason Plc and John Lewis signed an open letter to Reeves last year calling for the government to reinstate the policy. According to the Association of International Retail, the UK would become the only country in Europe offering VAT rebates to 450 million EU consumers. It also cited figures showing visitor spending in the UK was 92% of 2019 levels last year, compared with 106% in Spain and 110% in France.
Straits Times
22-07-2025
- Business
- Straits Times
UK retailers demand return of tax-free shopping in tourism plan
Making purchases exempt from VAT could result in £3.65 billion (S$6.3 billion) of additional spending by visitors from the European Union. LONDON - UK retailers are renewing efforts to persuade Chancellor of the Exchequer Rachel Reeves to bring back tax-free shopping for tourists, as the government prepares to set out its plan to boost the so-called visitor economy. Making purchases exempt from VAT could result in £3.65 billion (S$6.3 billion) of additional spending by visitors from the European Union, the Association of International Retail said in a submission to ministers published on July 22. That is on top of about £1.5 billion of spending by non-EU visitors the lobby group said was diverted from the UK when it scrapped tax-free shopping in 2021. The report sent to the Department for Culture, Media and Sport is the latest salvo in a long tussle between retailers and the government. Then Chancellor of the Exchequer Rishi Sunak used the UK's exit from the EU as a chance to end a system that let travelers reclaim the 20 per cent VAT sales tax on their purchases. Since then, Conservative and Labour governments – with the exception of the short-lived administration of former Prime Minister Liz Truss – agreed with Mr Sunak's assessment that the policy cost the Treasury more than it gained. Subsequent analysis by the Office for Budget Responsibility backed that view. Ms Reeves faces a fiscal shortfall heading into this year's autumn budget, after expensive U-turns on welfare cuts and amid reduced prospects for growth. That makes any change to her stance on tax-free shopping less likely, even as she faces calls to help companies after she raised payroll taxes this year. But British retailers argue they have lost out to countries like France and Spain that offer tax-free shopping to non-EU visitors, and have repeatedly put forward the argument that the Treasury is not taking into account the wider uplift in spending in considering the impact of the policy on the public coffers. Hundreds of retailers including Mulberry Group Plc, Fortnum & Mason Plc and John Lewis signed an open letter to Ms Reeves last year calling for the government to reinstate the policy. Top stories Swipe. Select. Stay informed. World Trump 'caught off guard' by Israel's strikes in Syria Opinion Singapore's vaping crisis lays bare the drug addiction nightmare for parents Singapore LTA seeks tailored solutions to improve Bukit Panjang LRT's maintenance inspections World US not rushing trade deals ahead of August deadline, will talk with China, Bessent says Multimedia 'It's very sad': She comforts loved ones turned away by inmates Opinion Sumiko at 61: 7 facts about facial skin ageing, and skincare ingredients that actually work Singapore Subsidies and grants for some 20,000 people miscalculated due to processing issue: MOH Opinion With Shatec cutting back operations, what's next for Singapore's hospitality sector? According to the Association of International Retail, the UK would become the only country in Europe offering VAT rebates to 450 million EU consumers. It also cited figures showing visitor spending in the UK was 92 per cent of 2019 levels last year, compared with 106 per cent in Spain and 110 per cent in France. BLOOMBERG
Business Times
22-07-2025
- Business
- Business Times
UK retailers demand return of tax-free shopping in tourism plan
[LONDON] UK retailers are renewing efforts to persuade Chancellor of the Exchequer Rachel Reeves to bring back tax-free shopping for tourists, as the government prepares to set out its plan to boost the so-called visitor economy. Making purchases exempt from value added tax (VAT) could result in £3.7 billion (S$6.4 billion) of additional spending by visitors from the European Union, the Association of International Retail said in a submission to ministers published on Tuesday (Jul 22). That's on top of about £1.5 billion of spending by non-EU visitors, the lobby group said was diverted from the UK when it scrapped tax-free shopping in 2021. The report sent to the Department for Culture, Media and Sport is the latest salvo in a long tussle between retailers and the government. Then Chancellor of the Exchequer Rishi Sunak used the UK's exit from the EU as a chance to end a system that let travellers reclaim the 20 per cent VAT sales tax on their purchases. Since then, Conservative and Labour governments, with the exception of the short-lived administration of former Prime Minister Liz Truss, agreed with Sunak's assessment that the policy cost the Treasury more than it gained. Subsequent analysis by the Office for Budget Responsibility backed that view. Reeves faces a fiscal shortfall heading into this year's autumn budget, after expensive U-turns on welfare cuts and amid reduced prospects for growth. That makes any change to her stance on tax-free shopping less likely, even as she faces calls to help companies after she raised payroll taxes this year. But British retailers argue they have lost out to countries such as France and Spain that offer tax-free shopping to non-EU visitors, and have repeatedly put forward the argument that the Treasury is not taking into account the wider uplift in spending in considering the impact of the policy on the public coffers. Hundreds of retailers including Mulberry Group, Fortnum & Mason and John Lewis signed an open letter to Reeves last year calling for the government to reinstate the policy. According to the Association of International Retail, the UK would become the only country in Europe offering VAT rebates to 450 million EU consumers. It also cited figures showing visitor spending in the UK was 92 per cent of 2019 levels last year, compared with 106 per cent in Spain and 110 per cent in France. BLOOMBERG
