MPs call on Jeremy Hunt to introduce duty-free shopping at UK terminals
MPs have called on the Chancellor to introduce duty-free shopping for arriving passengers at UK terminals.
The All-Party Parliamentary Group for the Future of Aviation wrote yesterday to Jeremy Hunt asking him to introduce VAT-free shopping at British airports, international rail and ferry terminals “to help our sector flourish and recover” from the impact of Covid.
“If the UK introduced duty-free for arriving passengers, we could drive our competitive advantage and divert sales away from our European neighbours, with passengers waiting until they arrive in the UK to make their duty-free purchases and so boosting British business,” the letter read.
Of no extra cost to the taxpayer, the policy will align the UK to 65 other countries around the world and is set to increase passenger spending by between 20 and 30 per cent.
“We urge you to seize the opportunity and help ensure the UK’s travel industry can continue its recovery from Covid-19 and play its full and essential role in driving economic growth by introducing arrivals duty-free shopping in airports, international rail, and ferry terminals at the upcoming financial statement,” MPs, spearheaded by chair Henry Smith, wrote.
Earlier this week, the Digital, Culture, Media and Sport (DCMS) committee slammed Hunt’s decision to scrap tax-free shopping for overseas tourists, which was initially proposed by former Chancellor Kwasi Kwarteng.
Chair of the DCMS committee Julian Knight dubbed the decision as “a spectacular own goal” by ministers, City PM reported.
Knight’s remarks were echoed by London mayor Sadiq Khan, who told City PM VAT-free shopping would entice people to London “rather than Paris, Dublin, Barcelona, elsewhere that is tax-free shopping.”
City PM has approached the Treasury for comment.