aShoppers took to London’s Oxford Street on Friday in black cabs or on foot to patronize the city’s upscale stores.
However, the changes may be slightly different than intended. Soon the region could become a beneficiary of his two plans announced by the Prime Minister. Kwasi KwartenFriday: Return of duty-free shopping on the high street and elimination of the 45% income tax band.
66-year-old Rita Waters left Selfridges with an unmistakable yellow bag hanging from the corner of her arm. While the VAT tax changes won’t change her shopping habits as a UK citizen, she felt positive about the decision to abolish the additional tax on those earning more than her £150,000 a year.
“And it filters,” said the retired Waters. “It will permeate people who don’t pay taxes, but they probably have more money in their pockets than the Treasury Department.”
A lifelong Conservative voter, she said the budget would allow her to spend more and donate to food banks. added.
While she applauds other changes such as the stamp tax, she wishes there were more windfall taxes on energy companies.
“Give them a chance,” she said of the government’s financial plans. “Give them a chance.”
Few people made their way to Oxford Street as Teresa Cladney and Angelic Joseph threw out their shoeboxes and stamped the cardboard until it was small enough to fit in a trash can outside Selfridges.
Like many foreign visitors to London’s high street, shoe designers from the Midwest will quickly find that shopping in the UK is cheaper than it used to be.
“It would be nice to avoid the hassle,” said Cladney, recalling that he wasted less time at the airport returning goods than he expected.
“If it’s as easy as it is in the US, you don’t get taxed the same day and you don’t have to do anything. It’s all about convenience,” she added. “Because everything is going up. It’s nice to see something come down a little bit.”
Kwarteng intends to digitize the new system and end the old pen-and-paper format.
Reintroduction of the previously discontinued tax-free shopping scheme in 2021 after Brexit will allow tourists to receive VAT reimbursement on goods purchased at boulevards, airports and other departure points and personally exported from the UK can luggage.
The move, which will cost around £1.3bn over 2024-2025, comes as the pound plummets to new lows against foreign currencies and the country battles the highest inflation rate in 40 years.
For Nouria Hafid, who has been selling fine jewelery on Bond Street for many years, the change will not only benefit her business significantly, but also affect her commission-based employee salaries.
“Honestly, I think it’s really good because tourists are coming back to London after Corona. They’re here, they have money and they want to spend it,” said Hafid, 32. . Existing Middle Eastern customers in the US, China and London.
“All the luxuries come from foreigners traveling here,” added Hafid, who in the past lost customers traveling to France and elsewhere for VAT-free shopping.
“We had to lower the price of the product a bit to be able to meet the market, but it’s still not enough. We’re losing money for that.”
https://www.theguardian.com/uk-news/2022/sep/23/tourists-want-to-spend-shoppers-in-london-share-views-the-mini-budget ‘Tourists want to spend money’: London shoppers share their views on mini budgets | Celent Mini Budget 2022