The current narrative from the Treasury is that the return of Tax Free Shopping would be costly for the British economy, to the tune of £2 billion a year.
This position is now being challenged by a fresh study from Oxford Economics, an independent economic consulting firm, that shows, a positive net impact to the UK Exchequer from the return of Tax Free Shopping. Oxford Economics Study, commissioned by our partner Association of International Retail, concludes that the Treasury’s assumptions were not accurate.
In fact, the UK economy could benefit by up to £350M every year by supporting a return of the original Tax Free scheme. This fantastic fiscal booster could have a positive impact on Bristish GDP and employment opportunities, even outside of the retail sector. Additionally, it would support the government’s levelling-up agenda, by bringing more EU tourists into UK regional airports.