Tax-free Shopping 2024-03-19
2024-03-19
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question is prompted by a recent review and ongoing industry representations about the impact of tax-free shopping withdrawal.
What assessment has been made of the potential merits of reintroducing tax-free shopping for international visitors, given OBR's review findings and industry submissions?
The Government is considering the Office for Budget Responsibility's review findings alongside industry representations. The OBR does not assess alternative policies, but its insights are useful in understanding overall behavioural incentives relevant to both EU and non-EU visitors. The Government will take time to consider these factors.
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Assessment & feedback
Specific commitment or timeline for policy change was not provided
Keeping All Taxes Under Review
Taking Time To Consider
Response accuracy
Q2
Partial Answer
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Context
The OBR informed the Treasury Committee that it has not assessed the cost of extending tax-free shopping to EU visitors, and the retail industry believes it could be much lower than estimated.
Given the lack of OBR assessment on the cost of extending tax-free shopping to EU visitors and the UK retail industry's belief in a significantly lower cost, is it time for a full independent review during English Tourism Week?
The Government acknowledges the importance of tourism and is considering OBR findings along with other submissions. While expanding tax-free shopping to EU visitors is not current policy, insights from OBR's work are relevant for both EU and non-EU populations. The Government will consider all data within broader context.
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Assessment & feedback
Commitment to independent review was not given
Taking Time To Consider
Within The Context Of Broader Data
Response accuracy