Speaking to Sky News, Sir Paul Smith argues that he is far more in favor of repealing the £2 billion tourist tax than he is of his own company suffering because the levy implies that the UK’s “fantastic” attractions are closed.
He gave an explanation of why he signed a letter to the chancellor, signed by four hundred business leaders, requesting that the decision to end VAT-free shopping for foreign visitors be reversed, in an interview with Business Live.
Over the weekend, there were reports indicating that Jeremy Hunt had requested the Office for Budget Responsibility to examine the tax, which generates approximately £2 billion in revenue for the UK government.
When the UK exited the European Union in 2020, the tax exemption came to an end.
Prior to this, international tourists from outside the EU were able to claim VAT on purchases made in Britain, just like they could when they made purchases elsewhere in the EU.
Then-chancellor Rishi Sunak disbanded it because a small number of central London businesses reaped the majority of its benefits.
Since foreign travelers chose to spend their money in places like Paris and Milan instead of recovering from the COVID pandemic, luxury businesses, hotel and restaurant groups, and tourism executives have vigorously pushed on their behalf.
