Duty Free Allowances

(asked on 7th October 2020) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government why their Consultation on the potential approach to duty- and tax-free goods arising from the UK’s new relationship with the EU: summary of responses, published in September, did not invite responses on the impact of the removal of the Extra Statutory Concession on VAT on goods supplied at duty-free and tax-free shops; what assessment they have made of the impact of that removal on the operating profits of individual airports; and what estimate they have made of the total impact of that change (1) on GDP, and (2) on the number of job losses that may result from it.


Answered by
 Portrait
Lord Agnew of Oulton
This question was answered on 20th October 2020

The Government published a consultation on the potential approach to duty-free and tax-free goods following the transition period which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with stakeholders to hear their views and received 73 responses to the consultation.

The consultation document discussed the Government’s concerns with the operation of tax-free airside sales under the extra statutory concession, and asked about the impacts of abolishing them. In particular, paragraph 4.26 was an open question about whether the Government should extend airside tax-free sales, and paragraph 4.27 was a question specifically about views and impacts of abolishing airside tax-free sales.

The Government continues to meet and discuss the change with stakeholders following the announcement of these policies.

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