Scrapping tax-free shopping for tourists will hit luxury sector

Luxury Shopping - New Bond Street, London

Source: Alamy

Chancellor Rishi Sunak has announced that the tax-free shopping scheme for non-EU tourists will come to and end on December 31.

Any overseas visitors will no longer be able to claim back VAT on items purchased in the UK and brought back in their suitcases – a move that many worry will further hit the already struggling luxury sector.

The government decision also affects fashion, beauty and accessories retailers in airports, which will no longer offer duty-free deals to travellers, although food and alcohol will still offer it.

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