Fortnum & Mason CEO Tom Athron has urged the government to scrap the tourist tax in the Autumn Statement before it is “too late” to prevent losing sales to France.
The chief executive warned: “Paris will be a very attractive proposition for visitors next year, as it hosts the Olympics.
“My view is that waiting until the Budget in the spring to tackle the tourist tax would be too late because people are already thinking about their travel plans for next year”.
He continued: “My plea to the government is to act now. We need to make sure Britain is as attractive as possible to visitors from overseas as it possibly can be”.
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While experts from the Centre for Economic and Business Research claim letting overseas tourists shop VAT free could strengthen the economy by £10bn, Jeremy Hunt has rejected cries to scrap the tax so far.
Athron said while the weak pound was currently “masking the effect” of the levy, this could change if it makes progress on the currency markets.
The Treasury ditched tax-free shopping for overseas visitors in 2021 and insists reinstating the measure would lead to £2bn of lost tax revenue.
However, supporters say this would be offset through higher sales and increased visitor numbers.
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