Duty Free and Brexit

A parliamentary Petition has been raised regarding Duty Free after Brexit which sets new protocols putting the United Kingdom in a greatly disadvantaged position regarding our airports and those on the Continent.  Readers and their friends are welcome to sign and distribute this BTN story via social media via https://www.btnews.co.uk/article/16992

From 1 January 2021 Duty Free sales of excise goods (alcohol and tobacco) will be extended to EU-bound passengers. Personal allowances will be introduced for passengers entering UK from the EU, with alcohol allowances significantly increased. Tobacco allowances will be maintained at current levels.  Airside tax-free sales of all non-excise goods (such as clothing and electronics) will not be extended to EU passengers, and will actually be withdrawn from all passengers.  The VAT refund scheme will not be extended to EU residents, and will be withdrawn from all travellers.

Airports and travel retailers are urging the Government to approve a new tax-free shopping regime at airports which will work for jobs, for the economy, and for the Treasury, and can be implemented at no cost to the taxpayer by 1 January 2021. York Aviation research suggests a new airside tax-free shopping regime for all international visitors would deliver a boost of up to £1.1bn of economic growth and support the creation of over 10,000 new jobs – mostly outside of London.

One of the pleasures of flying is to get to an airport early and dawdle around what are Britain’s finest shopping areas looking for gifts and bargains.  In particular connecting passengers, up to now 30% of Heathrow business, will certainly consider overseas airports for their shopping.  Heathrow could very well gain a reputation as an expensive calling point, and not the award winning airport it has been for the last decade.

The news has been taken up enthusiastically by the foreign media.

Les Echos – French financial newspaper
“Why on earth is London shooting itself in the foot in terms of competitiveness, at a time when France is instead preparing to expand its tax-free, which should favour Paris?... In Paris and Milan, meanwhile, everyone is rubbing their hands.”

Wall Street Journal
“The UK risks losing its status as a premier shopping destination after a popular tourist tax break expires, posing a new threat to retail property owners already whipsawed by the pandemic and Brexit.”

The Daily Mail
Summed it up  “More than 40 Tory MPs have pressured Rishi Sunak to rethink the decision.”

BTN 9 November covers the story and reproduces a letter to the Chancellor from John Holland-Kaye, CEO, Heathrow Airport; Derrick Hardman, MD UK&I, Global Blue; Fred Creighton, CEO UK & Germany, World Duty Free.

Index/Home page
 

OUR READERS' FINEST WORDS (All times and dates are GMT)

All comments are filtered to exclude any excesses but the Editor does not have to agree with what is being said. 100 words maximum

John BAXTER-SMITH, Burgess Hill

The reason is simple - those who are leading this Brexit disaster don't have a clue. But also when it was just a benefit for overseas visitors I suppose the cost was manageable but now it would have to be open to all vistors to GB with from within Europe as well as overseas - could include even lorry drivers etc so I guess Sunak has to keep hold of what ££s he can.