The decision to scrap VAT-free shopping in the UK has been slammed as a hammer blow to tourism and high-end street shops, slowing the return of international visitors.
According to the MailOnline, UK Hospitality, which represents over 740 companies, including pubs, bars and restaurants operating around 100 000 venues in England, Scotland and Wales, said there was “no doubt” the lack of VAT-free shopping was putting off visitors.
Watches of Switzerland Chief Executive, Brian Duffy, said the decision to scrap VAT-free shopping had driven visitors away, and that places popular with tourists, like Windsor, Edinburgh, Manchester and London, were suffering, while the likes of Paris and Milan were enjoying a resurgence of visitors. Duffy is calling on Chancellor of the Exchequer, Jeremy Hunt, to reverse the decision to end to VAT-free shopping.
VAT-free shopping allows tourists to claim back 20% VAT on what they buy when they leave the country. After it was axed by then-Chancellor, Rishi Sunak, when the UK left the EU, Chancellor Kwasi Kwarteng tried to reintroduce the break but Hunt reversed this, claiming it would save Treasury £2billion (R4,2 billion) a year.
