Analysts question government U-turn on VAT-free shopping for tourists

19-10-22

Industry bodies are continuing to criticise the UK government’s decision to abandon its planned revival of tax-free shopping for tourists. And while that’s hardly surprising, analysts seem to be on their side suggesting the strategy change makes no sense. They said that there are already clear signs of how the abolition has already hurt the UK.

In an analyst note, investment bank Jefferies said: “We are back to square one: the UK will continue to no longer offer tax refunds on local spend to overseas visitors, thereby putting London at a distinct disadvantage vs Paris or Milan.