Treasury’s Independent Forecaster to Review Axing of Tax-Free Shopping for Tourists

The Office for Budget Responsibility (OBR) is set to conduct a comprehensive review of the decision to eliminate tax-free shopping for tourists in the UK. This review could potentially lead to a reversal of the decision, which has been heavily criticized by leisure companies and retailers for discouraging visitors and resulting in billions of pounds in lost sales.

The Chair of the OBR, Richard Hughes, confirmed that the government spending watchdog intends to release its findings alongside the budget next month. The review comes in response to new evidence on international visitor numbers and consumption patterns, as well as analyses conducted by external organizations.

Although the Treasury has estimated that the restoration of VAT-free shopping would cost the exchequer £2 billion, it’s important to note that this analysis was not undertaken by the OBR. Previously, the Centre for Economics and Business Research highlighted the detrimental impact of eliminating tax-free shopping, stating that the UK economy loses £10.7 billion annually and that 2 million tourists are deterred each year.

The consequences of this decision have been felt across various sectors. Luxury retailers, like Watches of Switzerland, have experienced a decline in sales as tourists opt to shop in other European cities that offer VAT refunds. This situation has raised concerns among UK retailers, who believe that a lack of tax incentives for visitors makes the country less competitive and less attractive for business.

Efforts to reverse this decision have intensified with the launch of a campaign by Heathrow Airport, the British Chambers of Commerce, and the Federation of Small Businesses. The campaign emphasizes the negative impact on British businesses and urges the government to scrap the tax.

While the Treasury recognizes the value of retailers and continuously reviews all taxes, they have emphasized that VAT-free shopping is still available for non-UK visitors purchasing items in-store and having them sent directly overseas.

URED ZA ODGOVORNOST PREMA BUDŽETU (OBR) namjerava provesti temeljitu reviziju odluke o ukidanju poreza na kupovinu bez PDV-a za turiste u Ujedinjenom Kraljevstvu. Revizija bi mogla dovesti do povratka odluke koja je bila snažno kritizirana od strane tvrtki za razonodu i trgovaca zbog odbijanja posjetitelja i gubitka milijardi funti u prodaji.

Predsjednik OBR-a, Richard Hughes, potvrdio je da vladina nadzorna tijela namjeravaju objaviti svoje rezultate zajedno s proračunom sljedeći mjesec. Revizija dolazi kao odgovor na nove podatke o broju međunarodnih posjetitelja i uzorcima potrošnje, kao i analize provedene od strane vanjskih organizacija.

Iako je trezor procijenio da bi obnova bez PDV-a za kupovinu koštala blagajnu 2 milijarde funti, važno je napomenuti da ovu analizu nije provela OBR. Prethodno je Središte za ekonomska i poslovna istraživanja istaknulo štetan utjecaj ukidanja poreza na kupovinu bez PDV-a, ističući da britansko gospodarstvo godišnje gubi 10,7 milijardi funti i također odbija 2 milijuna turista svake godine.

Posljedice ove odluke su osjetili različiti sektori. Luksuzni trgovci, poput Watches of Switzerland, doživjeli su pad prodaje jer turisti biraju kupovinu u drugim europskim gradovima koji nude povrat PDV-a. Ova situacija izaziva zabrinutost među britanskim trgovcima, koji vjeruju da nedostatak poreznih poticaja za posjetitelje čini zemlju manje konkurentnom i manje privlačnom za biznis.

Napori za promjenu ove odluke su se intenzivirali lansiranjem kampanje od strane Heathrow Airporta, Britanske trgovinske komore i Federacije malih poduzeća. Kampanja ističe negativan utjecaj na britanske tvrtke i poziva vladu da odustane od ovog poreza.

Iako Trezor prepoznaje vrijednost trgovaca i kontinuirano pregledava sve poreze, naglasili su da je kupovina bez PDV-a i dalje moguća za posjetitelje izvan Ujedinjenog Kraljevstva koji kupuju u trgovinama i šalju ih izravno preko granice.

Relevantne veze:
Ured za odgovornost prema budžetu
Heathrow Airport