The head of British luxury brand Mulberry has called on the government to reinstate VAT-free shopping for international tourists, warning that the “unfair” tax burden is stifling investment and driving wealthy shoppers away from the UK.
Chief executive Andrea Baldo said the move would help revitalise Britain’s luxury and retail sectors — which have been hit hard by declining visitor spending since the 2021 abolition of the VAT rebate for overseas visitors — while boosting UK manufacturing and tourism revenues.
“Bringing back VAT-free shopping for tourists would be beneficial for the economy,” Baldo said. “You are competing with Paris and Rome — giving them an unfair advantage doesn’t make sense.”
According to data from Global Blue, spending by non-EU visitors in the UK remains at just 75% of pre-pandemic levels, compared with increases of 166% in Spain and 159% in France.
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