The UK is re-introducing tax-free shopping for tourists that visit the country.
To help the nation’s struggling retail industry, Britain will once again allow foreign tourists to buy without paying sales tax, said Finance Minister Kwasi Kwarteng on Friday.
Reading a mini-budget, he said: “Britain welcomes millions of tourists every year, and I want our high streets and airports, our ports and our shopping centres, to feel the economic benefit. So we have decided to introduce VAT-free shopping for overseas visitors”.
At the end of 2020, a previous tax-free shopping period was eliminated. Kwarteng declared that a digital system would replace the previous paper-based one.
The move, according to Linda Ellett, head of consumer markets, retail, and leisure at KPMG UK, will make the UK more competitive in luring tourists to the country.
She added that the move is even more crucial as the UK looks for measures to spur economic development, bring back international travel to pre-pandemic levels, and combat rising high-street prices.
Source: BoF
