Blick Rothenberg, a leading audit, tax and business consultancy, is urging the UK government to reintroduce VAT-free retail lighting for international tourists to support the country’s fashion industry.
As London Fashion Week celebrates its 40th anniversary, Gabby Donald, Corporate Tax Partner at the firm, highlights the significant contributions of the UK fashion and textile industry, which adds £62 billion to the economy and supports one in 25 jobs.
According to research commissioned by the UK Fashion and Textile Association, the industry generates more than £23 billion in tax revenue every year. Donald insists that reintroducing VAT exemption for duty-free shopping would make Britain more competitive with EU countries, which continue to offer this benefit to international tourists, and attract more global consumers to British brands.
Donald also highlights the opportunity for a modernized VAT lighting system: “Redesigning this lighting with a technology-based solution would improve the experience for consumers and reduce the administrative burden on HMRC.”
With the fashion sector playing such a vital role in the UK economy, the Government is being encouraged to seize the opportunity to support growth by restoring VAT-free shopping and helping the industry remain globally competitive.