Home / Knowledge / News / Textiles / UKFT demands reversal to end VAT-free shopping

UKFT demands reversal to end VAT-free shopping

22
Sep '20
Pic: UKFT
Pic: UKFT
UKFT is urging the government to reverse its decision to end VAT-free shopping to protect UK jobs and retail sales. Under the VAT Retail Export Scheme (VAT RES), international visitors can currently reclaim the VAT they pay on goods bought in UK shops that they take home in their luggage. The UKFT is the network for fashion and textile companies in the UK.

The government has announced it will end the scheme for visitors from all countries in the UK on December 31, 2020. UKFT has written to the Chancellor of the Exchequer demanding that this decision is reversed, according to a media statement by UKFT.

“This move is another blow to the UK fashion and textile industry, and our exporters. We fail to see the logic behind this decision at a time when we need to be doing everything we can do to increase sales. The government seems to have lost sight of the importance of exporting, whether that’s through encouraging overseas visitors to the UK or UK companies attending overseas tradeshows,” Adam Mansell, CEO of UKFT said.

“This is the worst possible timing for a decision like this. Luxury retailing is unprecedentedly tough and the effect on our business will be terrible when we still haven’t been able to sort out how we are going to get through this time. We urge the government to reverse this decision,” Ian Maclean, managing director of John Smedley and UKFT board member said.

“The end of tax free shopping in the UK is devastating news for retailers already hit hard by the pandemic and the loss of international travellers. Over 50 per cent of our city centre sales are currently tax free and over 33 per cent of our retail sales across the UK as a whole. We know these travellers will now move to other countries making British brands and manufacturers much poorer and ultimately reducing the total revenues to the treasury. We very much hope to see a reversal of this decision which is hugely damaging to the United Kingdom economy at a time when we need all the help we can get,” Simon Cotton, CEO of Johnstons of Elgin and UKFT board member said.

UKFT is also urging the government to allow Tradeshow Access Programme grants to be used for virtual tradeshows, after many key events for the UK fashion and textile industry have moved online.

Fibre2Fashion News Desk (GK)


Must ReadView All

Pic: Better Work

Apparel/Garments | On 24th Oct 2020

Positive change in Cambodian garment sector due to ILO BWP

Cambodian factories receiving the full package of services by Better...

Pic: Awaj Foundation

Apparel/Garments | On 24th Oct 2020

COVID erodes income of a third of Bangla apparel workers

Nearly a third of Bangladeshi garment workers suffered loss of...

Pic: Ralph Lauren

Fashion | On 24th Oct 2020

Ralph Lauren, Parity.org convene group to close gender gap

Ralph Lauren, which designs and markets premium lifestyle products,...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Karan Toshniwal, Orange O Tec

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Textile Industry, Head honchos

Textile Industry
Head honchos

Strike a balance between handmade in India and 'Make in India'

John Elmuccio,

John Elmuccio

Evolution St Louis is a company setting up a high-tech knitting facility...

Laxmikant Rathi,

Laxmikant Rathi

With more than 60 years of experience in the textile industry, Ideal...

Tolga Ozkurt,

Tolga Ozkurt

Çalik Denim is among the world's top 10 premium denim manufacturers...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Steve Cole, Xerium Technologies

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Frank Heislitz, Freudenberg

Frank Heislitz
Freudenberg

Freudenberg Performance Materials is a leading global manufacturer of...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Wendell Rodricks, Wendell Rodricks

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search