Commons Chairman Jacob Rees-Mogg said “one of the great things about leaving the European Union” could be the return of duty-free shopping.
Before a change in EU rules in 1999, the British were allowed to bring home a limited number of certain goods – such as alcohol, tobacco and perfume – duty-free.
In September, the Ministry of Finance announced that the amount that passengers from non-EU countries can bring with them will also be “significantly increased” and extended to EU countries at the end of the transition period.
For example, the government said passengers coming to the UK can bring back three cases of beer, two cases of still wine and one case of sparkling wine without paying UK duties.
As part of these changes, VAT refunds for overseas visitors to UK stores will be removed.
On business issues, Tory MP Henry Smith (Crawley) warned that this could affect UK businesses, adding: “This sector represents about £ 2 billion of our economy and employs around 20,000 people. Can we have a debate on re-examining this policy as soon as possible? “
On business questions, Mr. Rees-Mogg replied, “One of the great things about leaving the European Union is that we’re coming back duty free so people can get cheap alcohol on their first trip to the European Union in 20 years.
“And as I understand it, the VAT refund system continues to apply when goods are sent to the person, even if they are no longer available if you take them out of the country yourself.”
“We had to decide whether we want to extend this to all EU citizens according to WTO rules or to withdraw it from nationals of non-EU member states.
“And it was decided to standardize it as we already have with the European Union, instead of extending the concession.
“The consequences for sales would otherwise be quite significant.”