Tourism: VAT
Commons · Question 28308 · Tabled 9 Sep 2026 · Treasury · Official record
Answered 14 Sep 2026
Question
Asked by Dame Harriett Baldwin
To ask the Chancellor of the Exchequer, if he plans to request an updated OBR Assessment of the impact on the UK economy of ending Tax Free Shopping.
Answer
Answered by James Murray, 14 Sep 2026
In March 2024, the Office for Budget Responsibility (OBR) conducted a review of the previous government’s 2020 costing of removing tax-free shopping. The OBR’s updated estimate is that the withdrawal of the VAT Retail Export Scheme will save the Exchequer...