MPs backing the ‘Scrap the Tourist Tax’ campaign have secured a parliamentary debate to put forward the case of reinstating tax-free shopping for international visitors.
The Treasury will hear and formally respond to the proposals in a 90-minute Westminster Hall debate on 7 September.
Britain is currently the only country in Europe to not offer tax-free shopping to international visitors after it scrapped the perk following the end the Brexit transition period at the end of 2020.
Sir Geoffrey Clifton-Brown MP, who will open the debate, has led the campaign for its reinstatement in Westminster on behalf of the Association of International Retail and New West End Company.
He said: “It is really important that this subject is thoroughly debated in Parliament, which will hopefully send a strong message to the Chancellor ahead of the Autumn statement.”
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New West End Company chief executive and chair of the Association of International Retail Dee Corsi said: “The ‘tourist tax’ has already had a negative effect on many businesses in the West End and beyond, as retailers, hospitality, and leisure providers grapple with the loss of spend being diverted across the Channel [to Paris].
“Despite the return of international visitors, spending data consistently shows that Britain is underperforming when compared to the rest of Europe.
“This runs contrary to the Treasury’s previous assessment that ending tax-free shopping would have limited impact on international traveller behaviour.”
Many luxury retailers have been vocal about the negative impacts the loss of tax-free shopping has had on its business, with Mulberry closing the doors to its Bond Street store earlier this year due to the loss of footfall and sales from international visitors.
In May, Harrods managing director Michael Ward urged the government to “stop burying its head” and u-turn its removal of VAT-free shopping for overseas customers.
“I think it might be time for them to wake up and smell the coffee,” he added.
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