"The head of British luxury brand Mulberry has called on the government to reinstate VAT-free shopping for international tourists, warning that the "unfair" tax burden is stifling investment and driving wealthy shoppers away from the UK. Chief executive Andrea Baldo said the move would help revitalise Britain's luxury and retail sectors - which have been hit hard by declining visitor spending since the 2021 abolition of the VAT rebate for overseas visitors - while boosting UK manufacturing and tourism revenues."
"According to data from Global Blue, spending by non-EU visitors in the UK remains at just 75% of pre-pandemic levels, compared with increases of 166% in Spain and 159% in France. Mulberry estimates it has lost nearly £10 million in UK sales since the VAT-free shopping scheme was scrapped. Baldo said reinstating the VAT rebate would directly support UK manufacturing, with Mulberry's Somerset production sites set to benefit from higher output if the policy were reversed."
The head of Mulberry called on the government to reinstate VAT-free shopping for international tourists, warning that an "unfair" tax burden is stifling investment and deterring wealthy shoppers. The move would aim to revitalise Britain's luxury and retail sectors and boost UK manufacturing and tourism revenues. Data from Global Blue shows spending by non-EU visitors in the UK remains at 75% of pre-pandemic levels, versus increases of 166% in Spain and 159% in France. Mulberry estimates nearly £10 million in lost UK sales and about a fifth of international visitor traffic. Reinstating the VAT rebate would support Mulberry's Somerset production sites through higher output. Weak productivity forecasts could cut long-term economic potential, creating a £27 billion fiscal shortfall.
Read at Business Matters
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