VAT news and archive

West End retailers miss out on 220 million pounds due to 'tourist tax'

It is no secret by now that retailers across London remain unhappy about the UK government’s decision to scrap tax-free shopping incentives for tourists. The resulting impact of the move was further emphasised in a new report by the New West End Company (NWEC), which represents the retail landscape for the West End district of London. In its...

Business

UK ‘tourist tax’ reportedly costing 11.1 billion pounds in lost GDP

A new report by the Centre for Economics and Business Research (Cebr) has said that the UK’s widely debated ‘tourist tax’ is costing the region’s economy 11.1 billion pounds in lost gross domestic product (GDP). Cebr said that it had used tourist data released by the government last week to analyse the impact of scrapping the VAT-free shopping...

Retail

Tourist tax harmful to the UK, says retail Landlord

In Westminster Hall last week, Members of Parliament convened to discuss tax-free shopping for international visitors. The debate has sparked a wide range of opinions amongst the UK’s retailers, with the majority advocating for aVAT-free shopping scheme to attract foreign visitors and remain competitive against other European destinations. Hugh...

RetailFeatured

UK sees 750 million pound loss due to tourist tax impact on Chinese tourists

The absence of spending by Chinese shoppers due to the tourist tax is taking a toll on the UK, costing the nation an estimated 750 million pounds annually. A recent report from the Association of International Retail (AIR) has corroborated what many businesses have been emphasizing for months: high-spending Chinese tourists are now choosing to...

BusinessFeatured

Without tax free shopping UK is least attractive shopping destination says Burberry chief

Burberry chair Gerry Murphy has accused UK Prime Minister Rishi Sunak of making a grave mistake in removing the VAT refund for foreign shoppers, claiming that it has made the UK the least attractive shopping destination in Europe. Mr Murphy alluded that tourists can shop tax-free in other cities such as Paris, Milan, and Amsterdam, making the UK...

Business

Pakistan proposes no VAT on textiles

In order to boost its growing textile sector, Pakistan's commerce ministry has promised to do away with value added tax (VAT) for textiles and make it zero from July 1 2016. Federal commerce minister Khurram Dastgir Khan made the announcement at the 15th Textile Asia 2016 exhibition, an international B2B textile and machinery show, which took...

Fashion

VAT rise adds to retail crisis

Retailers are braced for a spate of bankruptcies amid fears that High Street spending is poised to drop sharply. Experts are warning that rising consumer debt and the increase in the VAT rate will prompt shoppers to begin to rein in spending this week. Sales have jumped over the past few days with the rush to beat the tax increase and to snap up...

Fashion

VAT rise to affect high street

Poorly communicated VAT rises in January could cause yet more of the High Street's most popular brands to disappear in 2010, warns brand specialists at Brand Reputation. January is usually a time when retailers can count on a peak in sales after the Christmas boom, yet with VAT set to rise back to 17.5 per cent, many brands will have to consider...