Scottish Government backs calls for tax-free shopping

It comes ahead of the new Chancellor of the Exchequer’s UK Budget.

In response to a written parliamentary question from Michelle Thomson MSP, the Scottish Government’s Finance Secretary Shona Robison MSP has backed calls from the retail industry for the restoration of tax-free shopping.

The Scottish Retail Consortium has been in the vanguard of efforts in Scotland to encourage UK ministers to reinstate the tax relief for international visitors. This would aid retail, tourism, and hospitality sectors in Scotland.

David Lonsdale, director of the SRC, said: “This intervention from Scottish Ministers in support of the restoration of tax-free shopping is most welcome and timely.

“A growing chorus is voicing serious doubts about the wisdom of the previous UK government’s decision to scrap tax-free shopping for international tourists to Scotland and the rest of the UK.

“With domestic households still cautious about spending, a fresh effort should be made to attract high spending visitors from abroad. They make a valuable contribution through purchases of goods and holidaying here, yet international tourist spend has shifted to the Continent because of the tax savings on offer.

“Reinstating tax-free shopping in the Chancellor’s Budget would lift international visitor numbers and high street spending. In turn that will generate revenues and jobs in retail, tourism and hospitality here in Scotland. With the need for economic growth paramount this is an open goal for the Chancellor’s Budget.”