Robison backs VAT-free shopping for tourists – Daily Business

Scotland’s retailers have won the support of Scottish Ministers in the campaign to reinstate tax-free shopping for international visitors.

In response to a written parliamentary question from SNP MSP Michelle Thomson, Finance Secretary Shona Robison has called on the Chancellor Rachel Reeves to reverse the decision taken by the Conservative government in 2020.

It was introduced to help recover income after the increase in public spending during the Covid pandemic, but campaigners say the UK is now at a disadvantage to other countries which do not have the restriction.

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.

Ms Robison said the Scottish Government opposed the abolition of tax-free shopping when it was announced and consistently called for the Tory Government to listen to the industry and reconsider their position on the issue.

“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.”

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.”