Will we be able to make duty-free purchases between the UK and the rest of the world in 2021? The answer is yes. Passengers will still be able to make duty-free purchases in Duty-Free Shops.. The announcement even comes with some good news. Travellers between the EU and Great Britain will once again be able to buy alcohol and tobacco tax-freeThis facility is no longer available for travel within the European Union. Passengers returning from the EU to Great Britain will even benefit from a higher excess.
We are talking about Great Britain. In fact, the government has not yet decided anything for travel to and from Northern Ireland, whose legal status is becoming hybrid. On the other hand, the government has taken a decision that will cost airports a lot of revenue.
Duty-Free but no more Tax-Free
The Chancellor of the Exchequer - the equivalent of the Chancellor of the Exchequer - confirmed that no longer allow duty-free sales designated as Tax-Free to international passengers. Not only for those travelling within the EU, but also for the rest of the world.
In an official communication from the UK Treasury, the government states ". put an end to duty-free sales at airports. This concerns electronics and clothing for passengers travelling to countries outside the UK" . The Treasury also expressed doubts as to whether airport consumers would really benefit from this tax break.
The Treasury explains that selling certain foodstuffs as Tax-Free is not ". in line with international tax principles" . VAT and excise duty on goods must be paid in the country of consumption. But the government is pointing the finger at the fact that many of the products it buys tax-free are exported and then reimported by passengers living in the UK. In Europe, similar legislation exists in Switzerland or to Denmark.
Such a decision will put a strain on the finances of the UK airports. Indeed, their development strategy in recent years has largely been based on increasing the number of shops. London Heathrow, for example, is often described as a shopping centre with aeroplanes...
Heathrow 4 closed for good?
The restriction will cost millions of pounds, according to the British Airports Association. And it is already leading to restrictions. For example, Heathrow airport has decided to allow Terminal 4 to close until the end of 2021. Rumour has it that this terminalwhich is relatively far from the other terminals, may never reopen.
In a press release, the CEO of Heathrow Airport Holdings Ltd, John Holland-Kaye, stated that ". 2021 should have been the year of economic recovery in the UK. But recent announcements, such as the tourist tax or the end of tax-free salesThis could be the final stab in the arm for struggling businesses that depend on tourists. This is also the case for airport businesses. To make "Global Britain" a reality, the government should help the aviation sector survive, develop links with our major trading partners. And attract businesses and tourists to come to Britain to spend their money." .
