DUTY free shopping will now be available OUTSIDE of airports – but the tax discount will only apply to non-British residents.
Holidaymakers will be able to treat themselves to cheaper goodies across the UK in a major boost for the economy.
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When shoppers buy products they pay a number of taxes on them, such as VAT.
These taxes are already factored in to sales prices – so you might not realise they are there.
Duty free makes products cheaper by removing local taxes, with the expectation the purchase will leave the country.
Tourists used to be able to able to claim back VAT at the airport or rebate agencies.
But Rishi Sunak removed the ability when he was Chancellor.
The move was criticised because it saw big budget shoppers choose Paris and New York as their go-to retail destination over London.
Now, Kwasi Kwarteng will bring the tax rebate back.
However, only non-British residents will be able to make claims.
So if you’re not a British citizen but live in the UK, you won’t be eligible.
By expanding duty free shopping into cities, tourists will have wider access to cheap goodies and will then be more likely to spend money, boosting the local economy.
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Tory MP Nickie Aiken told The Sun: “I am delighted with today’s announcement. Reintroducing VAT-free shopping for overseas visitors will boost retail, hospitality and leisure industries not just in central London but across the whole UK.
“Before it was scrapped tax free shopping was worth £3bn to the British economy. It was a huge draw and visitors also spent billions in our hotels, restaurants, pubs, and theatres.
“I hope we will see VAT-free shopping restored in time for our new King’s coronation when we expect huge numbers of overseas tourists to visit the UK.”
Today’s announcement on duty free shopping came as part of the Chancellor’s mini budget bonanza.
The not so small budget saw Mr Kwarteng swing an axe at a load of taxes.
The National Insurance hike has been scrapped, along with the health and social care levy that was due to replace it in April next year.
Meanwhile, a rise in corporation tax due next year has been binned, along with the cap on bankers’ bonuses.
