VAT Exemption for International Visitors 2024-05-07
2024-05-07
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
▸
Context
The question arises from a review by the Office for Budget Responsibility of VAT-free shopping, following industry representations and data on retail spend.
Whether he plans to reintroduce VAT-free shopping for international visitors. The Government are considering the findings of the OBR review of VAT-free shopping alongside broader data and industry submissions. Will the Minister provide a definitive plan?
The Government are considering the findings of the OBR review of VAT-free shopping alongside broader data and industry submissions. We continue to welcome further submissions and representations in response to those findings.
▸
Assessment & feedback
Specific plan or commitment to reintroduce VAT-free shopping was not provided
We Continue To Welcome Further Submissions
Response accuracy
Q2
Partial Answer
▸
Context
Data from Heathrow airport shows that despite near-full recovery in passenger volumes post-lockdown, retail spend on affected goods remains 32% below pre-pandemic levels. The industry is calling for VAT-free shopping or similar incentives.
Data from Heathrow shows a 32% decline in retail spend on affected goods despite full recovery of passenger volumes post lockdown. Heathrow and many businesses are urging the Government to reintroduce VAT-free shopping or similar incentives. Will the Minister acknowledge these figures, listen to industry demands and reinstate this popular policy?
Met Heathrow last week to hear representations. The challenge is assessing forecast changes and potential costs of £2.5 billion from a worldwide scheme, considering deadweight cost and behavioural change assumptions.
▸
Assessment & feedback
Specific commitment or plan to reinstate VAT-free shopping was not provided
The Challenge Is Assessing Forecast Changes
Response accuracy