The Scottish Retail Consortium has welcomed the backing of
Scottish Ministers over the reintroduction of tax-free shopping
for international visitors. It comes ahead of the Chancellor of
the Exchequer's UK Budget next month.
In response to a written parliamentary question from MSP (see below), the
Scottish Government's Finance Secretary MSP has backed calls from the
retail industry for the restoration of tax-free shopping.
The Scottish Retail Consortium has for years argued reinstating
the tax relief for international visitors would aid retail,
tourism, and hospitality sectors to grow here in Scotland.
David Lonsdale, Director of the Scottish Retail Consortium, said:
“This intervention from Scottish Ministers in support of the
restoration of tax-free shopping is welcome and timely. A growing
chorus is voicing serious doubts about the wisdom of the previous
UK Government's decision to scrap tax-free shopping for
international tourists to Scotland and the rest of the UK.
“With domestic households still chary of spending and government
looking for ideas to pep up economic growth, a fresh effort
should be made to attract high spending visitors from abroad.
They make a valuable contribution through purchases of goods and
holidaying here, yet international tourist spend has shifted to
the Continent because of the tax savings on offer.
“Reinstating tax-free shopping in the Chancellor's Budget would
lift international visitor numbers and high street spending. In
turn that will generate revenues and jobs in retail, tourism and
hospitality here in Scotland. With the need for economic growth
paramount this is an open goal for the Chancellor's Budget.”
ENDS
Note:
SCOTTISH PARLIAMENT
WRITTEN ANSWER
7 October 2025
(Falkirk
East) (Scottish National Party): To
ask the Scottish Government what its position is on the reported
calls from the Scottish Retail Consortium and Scottish Tourism
Alliance for the UK Government, in its upcoming Budget, to
restore tax-free shopping for overseas visitors as a means of
supporting Scotland's retail, tourism and hospitality sectors.
S6W-40693
: The Scottish
Government opposed the abolition of tax-free shopping when it was
announced in 2020 and consistently called for the previous UK
Government to listen to the industry and reconsider their
position on the issue.
The Scottish Government recognises how vital tourism is to our
economy. It creates jobs, sustains communities and contributes
significantly to the economy and enables visitors and residents
alike to experience the incredible offer we have here in
Scotland. Many EU countries continue to offer tax-free shopping
for non-EU visitors, which make them a more attractive tourist
destination. Scotland's vibrant retail sector is put at a
disadvantage as a result.
We call on this UK Government to ensure they are listening to
these consistent industry calls regarding the reinstatement of
VAT free shopping.
Ultimately, the Scottish Government believes that all tax powers
should be devolved to the Scottish Parliament so that we can
provide the support that Scottish retailers and tourism
businesses need.
https://www.parliament.scot/chamber-and-committees/questions-and-answers/question?ref=S6W-40693
