What: Fortnum & Mason CEO, Tom Athron, has urged the government to scrap the tourist tax in the Autumn Statement to prevent losing sales to France, which will be hosting the Olympics next year.

Why it is important: Athron emphasized the need for immediate action, as people are already planning their travel for the upcoming year.

While experts suggest that allowing overseas tourists to shop VAT-free could strengthen the economy by GBP 10bn, the government has rejected calls to eliminate the tax thus far. Athron believes that the weak pound is currently disguising the impact of the levy, but this may change as currency markets fluctuate. In 2021, the Treasury discontinued tax-free shopping for overseas visitors, arguing it would lead to GBP2bn in lost tax revenue, but supporters argue that higher sales and increased visitor numbers would offset this.

Fortnums CEO urges government to ditch tourist tax before it’s ‘too late’