Think Tank: Scrapped Tax-Free Shopping Scheme Would Contribute £11.1 Billion to Economy

The UK economy could have recorded a higher GDP last year, had the government not scrapped the tax-free shopping scheme for international visitors, a think tank has reported. A fully operational VAT retail export scheme would have attracted two more million visitors, who would spend up to £4 billion more, analysis by the Centre for Economics and Business Research (CEBR) revealed. In terms of the GDP impact, it would contribute £11.1 billion to the economy, up from the previous estimate of £10.7 billion, CEBR said. Under the VAT Retail Export Scheme, tourists could claim back tax on items they purchased but didn’t consume in the UK. The days of tax-free shopping for visitors to England, Scotland and Wales came to an end on Dec. 31, 2020, when the VAT refund scheme was discontinued by the government....