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 new Chancellor
of the Exchequer's UK Budget on Wednesday.
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 been in the vanguard of
efforts in Scotland to encourage UK Ministers to reinstate the
tax relief for international visitors. This would aid retail,
tourism, and hospitality sectors 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 most 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 cautious about spending, 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
28 October 2024
(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 the upcoming Autumn Budget, to
restore tax-free shopping for overseas visitors as a means of
supporting Scotland's retail, tourism and hospitality sectors.
(S6W-30284)
: The Scottish
Government opposed the abolition of tax-free shopping when it was
announced in 2020 and called upon the previous UK Government to
listen to industry and urgently reconsider the issue, including
in a letter sent to the Chancellor ahead of the 2024 UK Spring
Budget. The removal of VAT-free shopping is likely to be having a
detrimental impact on retail businesses and may be discouraging
tourists from visiting the UK, and Scotland specifically. Many EU
countries offer tax-free shopping for non-EU visitors, giving
their retail sectors an advantage over Scotland's fantastic range
of shops, stores, manufacturers and producers and making those
European cities a more attractive tourist destination. The
Scottish Government's position remains that the restoration of
VAT-free shopping for all overseas visitors to the UK would help
support this vital sector in Scotland.
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.
