UK. Heathrow Airport, Dufry and Global Blue have mounted a joint legal challenge to the UK Treasury’s hugely controversial move to end tax free sales and VAT rebates for outbound tourists.
The move, announced on 11 September, means that tax free sales at UK airports will be withdrawn for all outbound passengers from 1 January on goods other than liquor & tobacco. That includes the all-important fragrances & cosmetics category, as well as fashion, luxury, and consumer technology.
“We are exploring all options available to us on this decision”
The government decision, announced with no industry consultation, no impact assessment, and no warning, stunned the airport sector and its various stakeholders, together with other tourist-oriented businesses such as outlet malls and department stores.
In a joint statement supplied to The Moodie Davitt Report today, the three parties said: “We continue to work with Treasury Ministers and officials regarding this matter.
“We believe there are solutions available that can address concerns, whilst protecting the UK’s competitiveness as a shopping destination and airport retail in a year that will be so critical as it recovers from the worst year in history. All are responsible for employing thousands of people and securing billions of inward spend each year. We are exploring all options available to us on this decision.”
Cameron Gray, Secretary General of the UK Travel Retail Forum said: “The UKTRF and its members whole-heartedly support London Heathrow, Dufry and Global Blue’s judicial review application regarding the Government’s decision to end tax-free shopping in the UK from January 2021.
“As representatives of the UK’s travel retailers and airport operators, on Friday 11th September we were stunned the UK Government could make such an ill-informed and misjudged decision.
“As an industry on its knees during the COVID outbreak, and now staring down the barrel of a second national lockdown, this policy would be yet another nail in the UK travel industry’s coffin”
“As an industry on its knees during the COVID outbreak, and now staring down the barrel of a second national lockdown, this policy would be yet another nail in the UK travel industry’s coffin.
“With thousands of UK airport jobs already lost to COVID-19, an anticipated 19,400 additional jobs throughout the UK are now also needlessly in jeopardy.
“The decision to axe airport tax free shopping entirely, not only comes as a complete shock but has fundamentally blindsided the industry, with little to no opportunity for us to respond.
“We urge the Government to not only reverse this misguided decision, but urgently review the initial consultation to give the entire industry the opportunity to voice its concerns.”
