Commons Sense

House of Commons · Ministers' Questions

Tax-free Shopping

Tuesday 19 March 2024 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Government is considering the Office for Budget Responsibility's review findings and industry submissions regarding tax-free shopping for international visitors.
  • Government acknowledges the importance of tourism and is reviewing the potential merits of tax-free shopping for both EU and non-EU visitors.
  • Government is not currently planning to extend tax-free shopping to EU visitors but is open to considering all available data and insights.

Topics (select to filter)

Questions & Answers

Q1 Nickie Aiken
Taxation
Context

The question is prompted by a recent review and ongoing industry representations about the impact of tax-free shopping withdrawal.

Question

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?

Answer from Nigel Huddleston

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.

Partly answered

Not addressed: Specific commitment or timeline for policy change was not provided

How: Keeping All Taxes Under Review, Taking Time To Consider

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Q2 Nickie Aiken
Economy Taxation Business & Trade
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.

Question

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?

Answer from Nigel Huddleston

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.

Partly answered

Not addressed: Commitment to independent review was not given

How: Taking Time To Consider, Within The Context Of Broader Data

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