UK Government Considers Reinstating Tax-Free Shopping for Tourists

Amidst pressure from businesses and MPs, the Office for Budget Responsibility is set to review the controversial tourist tax ahead of the Spring Budget.

The Office for Budget Responsibility (OBR) will review the tourist tax, potentially reversing a decision that has cost UK retailers £1.5bn.
Over 400 business leaders, including those from Burberry and Harvey Nichols, have urged Chancellor Jeremy Hunt to scrap the tax.
Reintroducing VAT-free shopping could boost the UK economy by more than £4bn and support 78,000 jobs.
Critics argue the tax has made the UK less competitive, driving international shoppers to Paris and Milan.
The Treasury maintains that VAT-free shopping is available for non-UK visitors on items shipped directly to their overseas address.