Bring back duty-free perk to boost London - mayor

The politician of London has called connected the chancellor to reinstate duty-free buying for overseas visitors and widen it to EU visitors.

The superior has been disadvantaged by the extremity of the perk said the bosses of Heathrow, Selfridges and Harrods. 

Sadiq Khan said it would supply a "much-needed boost" to the capital's retail sector.

An HM Treasury spokesperson said the chancellor was prioritising being "responsible" with nationalist finances.

Before Brexit successful 2020, planetary visitors could person a VAT refund connected items bought successful High Street shops, astatine airports oregon different departure points from the UK which they exported successful idiosyncratic luggage.

It was acceptable to instrumentality arsenic portion of Kwasi Kwarteng's "mini-Budget" but dropped by Chancellor Jeremy Hunt erstwhile helium took up the station past year.

Mr Khan co-signed a missive connected 31 January to the chancellor successful which helium said that reinstating duty-free buying would assistance London's retail and hospitality sectors "at a clip they request it most".

"Our affluent ecosystem of shops, hospitality venues, and taste attractions, is heavy babelike connected some home and planetary tourists," Mr Khan wrote.

Steve Medway, CEO of the Knightsbridge and King's Road Partnerships, representing implicit 500 businesses successful the Kensington and Chelsea area, including large signatories to the letter, called connected the chancellor to "see reason".

"The withdrawal of tax-free buying puts London arsenic an planetary tourer destination astatine a disadvantage," helium said. 

He highlighted that shoppers from China would person the taxation simplification "if they take Paris oregon Milan alternatively of London".

Kay Buxton, main enforcement of Marble Arch London BID, which signed the letter, claimed probe showed that reinstating duty-free buying could adhd £3bn to the UK economy.

An HM Treasury spokesperson said the chancellor was prioritising being "responsible" with nationalist finances.

They said: "Introducing a wide-ranging VAT-free buying strategy would travel astatine excessively precocious of a cost, arsenic has been supported by erstwhile estimates from the Office for Budget Responsibility."

Tax-free buying is disposable to each non-UK visitors who acquisition items successful store and person them sent straight to their overseas address.