Connect with us

Hi, what are you looking for?

United Kingdom

Scrapping tax-free shopping could cost 40,000 jobs and billions of pounds, claims industry leader

Scrapping tax-free shopping could cost more than 40,000 jobs and leave Government coffers short of billions of pounds, it is claimed.

The Association of International Retail (AIR) reckons 25,000 retail staff and 15,000 factory workers will be jobless following the decision to axe the tax-free perk at the end of the year.

AIR also says the £1.4 billion saved by the move will be dwarfed by a £6 billion loss caused when tourists go elsewhere for their duty-free.

Advertisement

Paul Barnes, chief executive of AIR, said:

“I would urge the Chancellor to look again at the numbers.

“It is not just the High Street that he is putting at risk, but also people’s livelihoods.”

In non-Covid times tourists spend more than £20 billion a year in Britain.

Last week 40 Tory MPs wrote to Chancellor Rishi Sunak asking him to reverse his decision.

They claimed it would “set back the Government’s levelling-up agenda [to help the North] and damage our ambitions for a global Britain”.

A Treasury spokesman said:

“About 92 per cent of visitors to the UK don’t use the VAT Retail Export Scheme and extending it to the EU could increase total costs up to £1.4 billion a year.

“Tax-free shopping is still available in stores when goods are posted to overseas addresses.”

 

Comments

Latest Tweets

London Globe

Calls for EU to investigate Russian payments to Maltese dentist. london-globe.com/european-uni… zpr.io/DSCQfaBy9JKt #news #

Advertisement

You May Also Like

United Kingdom

Film director Ridley Scott has recalled the death of actor Oliver Reed while making the Oscar winning blockbuster Gladiator. Scott said hard-drinking Reed “just...

Business

The controversial Russian businessman Viktor Baturin, well-known for his years-long counterstanding with his wealthy sister Elena, widow of Moscow ex-mayor Yuri Luzhkov, is likely...

United Kingdom

The Tremeloes. Dave Munden centre Dave Munden the Tremeloes drummer – and often lead singer – with the 60s chart toppers has died. He...

European Union

KAPIKULE, TURKEY, May 24th, 9:00 GMT]- Over 100 members of The Ahmadi Religion of Peace and Light, a persecuted religious minority, who have presented...