To ask the Chancellor of the Exchequer, whether his Department has conducted research on the potential economic impact of duty-free shopping in other countries for arriving passengers; and if he will make an assessment of the potential economic impact of introducing duty-free shopping for passengers arriving in the UK.
Answered on
21 March 2023
Duty-free on arrival would place additional pressure on the public finances to which excise duty makes a significant contribution.
Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere.
Although there are no plans to introduce such a scheme, the Government keeps all taxes under review and considers all available evidence as part of the tax policymaking process.