Hunt warned controversial 'tourist tax' on foreign visitors could spark loss of ... trends now

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A controversial ‘tourist tax’ on foreign visitors imposed by Chancellor Jeremy Hunt could mean the loss of more than 100,000 jobs, according to an in-depth analysis shown to the Government.

The levy could also mean that Britain forfeits up to £6 billion in tourist spending to other countries, particularly in Europe where overseas travellers are offered tax incentives to spend in shops.

Bosses at Harrods and Selfridges have joined a chorus of business leaders demanding a review of Mr Hunt’s decision to scrap VAT-free shopping for international visitors.

They say it puts London at a serious disadvantage to rival cities, including Paris and Madrid which are said to be targeting visitors from outside the European Union – including Britain – by promoting the incentive at airports and shopping destinations. Tourists from overseas were allowed to reclaim the 20 per cent VAT on their purchases in the UK – until January 2021, when the tax break was scrapped by then Chancellor Rishi Sunak.