The UK is considering reintroducing “tax-free” purchases two years later

the shopping Tax-free They are back on the table in the UK. After Brexit, the country withdrew the program that allowed foreign tourists to refund VAT on their purchases (20%). Now, after years of pressure from retailers and especially luxury brands, the debate will return to Parliament on September 7..

Celebration of Debate is the result of a campaign by the International Retail Association and a New West End companyAn association of more than 600 retailers, restaurateurs and hoteliers in London’s main business district, which includes Oxford Street and Regent Street.

Withdraw from the purchase program Tax-free It has already spurred strong opposition from trade organizations in 2021. Retailers argued that it would directly affect salesAnd today they defend that, despite the return of tourists after the pandemic, spending continues to develop worse than in the rest of Europe.

A report issued by the “Lobby” of retailers confirmed that the recovery of the “tax break” would add 4,000 million pounds sterling to the British economy.

Retailer organisations, backed by companies such as Burberry, Mulberry or Value Retail, have commissioned a report from Oxford Economics that concludes that refunds for tax-free purchases It could add around £4 billion to the UK economy each year And support about 78,000 jobs.

For its part, the Ministry of Economy has always emphasized that the recovery of the program will have a direct impact on British accounts, The public treasury cost about 2000 million Egyptian pounds in unpaid taxes.

In 2022, foreign tourists will spend £26.5 billion in the UKa significant increase compared to EGP 20.9bn in 2021. The data also exceeded pre-pandemic revenues, with an increase of 7% compared to 2019.

The increase was driven by the recovery of arrivals data following the lifting of restrictions derived from Covid-19. Specifically, the UK received 31.2 million visits from foreign travellers, compared to 6.4 million in 2021. However, the average daily spend was the same as in 2019, one hundred pounds. The average spend per visitor was £843, down from £875 in 2021, but up from £696 in 2019.