Current status: Answered by Shona Robison on 28 October 2024
To ask the Scottish Government what its position is on the reported calls from the Scottish Retail Consortium and Scottish Tourism Alliance for the UK Government, in the upcoming Autumn Budget, to restore tax-free shopping for overseas visitors as a means of supporting Scotland’s retail, tourism and hospitality sectors.
The Scottish Government opposed the abolition of tax-free shopping when it was announced in 2020 and called upon the previous UK Government to listen to industry and urgently reconsider the issue, including in a letter sent to the Chancellor ahead of the 2024 UK Spring Budget.
The removal of VAT-free shopping is likely to be having a detrimental impact on retail businesses and may be discouraging tourists from visiting the UK, and Scotland specifically. Many EU countries offer tax-free shopping for non-EU visitors, giving their retail sectors an advantage over Scotland’s fantastic range of shops, stores, manufacturers and producers and making those European cities a more attractive tourist destination.
The Scottish Government’s position remains that the restoration of VAT-free shopping for all overseas visitors to the UK would help support this vital sector in Scotland.
Ultimately, the Scottish Government believes that all tax powers should be devolved to the Scottish Parliament so that we can provide the support that Scottish retailers and tourism businesses need.