The UK’s ‘tourist tax’ is causing the country to miss out on £750 million in annual spending by Chinese shoppers, according to a report by the Association of International Retail (AIR). The report attributes this loss to the ending of VAT-free shopping for tourists in early 2021. While countries like France, Italy, and Spain still offer VAT-free shopping, the UK’s decision has driven affluent Chinese tourists to spend their money elsewhere. The AIR is calling for a reversal of this policy, arguing that attracting Chinese tourists through shopping could significantly benefit the UK economy.
