Heathrow claims huge financial losses due to…

Heathrow claims huge financial losses due to government stoping tax-free shopping to international passengers (and those in transit)
2020-12-15 09:54:00
The UK government’s decision not to offer tax-free shopping to international visitors is upsetting the airports, like Heathrow, that have benefited financially from it. In September the government announced the ability of overseas customers getting VAT shopping would end at the start of January 2021, as it has been a practice that is expensive to administer, and is “a costly relief, which does not benefit the whole of Britain equally”, and the current use is mostly centred in London.  Also that that retailers who offer the service are putting other high street retailers at a competitive disadvantage. Heathrow’s PR machine is trying to call this a “tourist tax” and is whingeing about it.  Normally a tourist tax means a small amount that visitors pay to stay overnight in accommodation abroad – that sort of thing.  The removal of the VAT perk for airport shops, and thus indirectly for Heathrow (paid by the shops) is not a tourist tax.  But it is likely to reduce the amount of sales in airport shops.  Heathrow claims 2,000 jobs could be lost? Various retailers affected (including Marks & Spencer, Mulberry, Paul Smith, Ted Baker) have written to the chancellor to express their opposition to the new tax rules. .Tweet   Heathrow could lose 2,000 retail jobs because of ‘tourist tax’ UK government’s decision not to offer tax-free shopping to international visitors criticised By Mark Sweney   @marksweney  (The Guardian) Fri 11 Dec 2020 Heathrow airport says the ‘tourist tax’ could be the ‘final nail in the coffin’ for many struggling businesses in the retail and hospitality sectors. Heathrow could lose 2,000 retail jobs because of the government’s decision not to offer tax-free shopping for tourists, according to the airport’s chief executive. John Holland-Kaye said the move, which will make the UK the only country in Europe to have a “tourist tax” on international visitors, could be the “final nail in the coffin” for many struggling businesses in the retail and hospitality sectors. He said: “2021 should be the year of Britain’s economic recovery but recent announcements, such as the tourist tax, could be the final nail in the coffin for struggling businesses such as restaurants, hotels and theatres that rely on inbound tourists, as well as for retailers.” Passenger numbers at Heathrow fell by 88% in November as travel restrictions

READ MORE

Leave a Reply

Keeping ahead of COVID-19

This rapidly evolving corona virus (COVID-19) has imposed an unsettling situation upon our community and its businesses. While we are maintaining to operate a "business as usual" approach, we are taking a number of changes to help protect both you as customers and us as drivers during these difficult times.

All of our vehicles are sanitised before and after each journey / dividing screens fitted to separate the rear of the vehicle.

We also offer delivery services for local businesses to help get essential items to local customers as well as across the UK.

More Info on Delivery Services