UK. The Airport Operators Association (AOA) has slammed the British government’s decision announced Friday to scrap tax free sales for passengers departing England, Scotland and Wales from next January.
As reported (and as predicted), travellers departing the UK for EU countries will be able to purchase duty free liquor & tobacco from 1 January 2021. But in a bombshell addition to the legislation, tax free sales at airports will be withdrawn for all outbound passengers from the same date on goods other than liquor & tobacco. That includes the all-important fragrances & cosmetics category, as well as fashion, luxury, and consumer technology.
The move, announced without any consultation with industry, no impact assessment, and no warning, has stunned the airport sector and its various stakeholders.
AOA Chief Executive Karen Dee said: “The Government have once again shown a complete lack of awareness for the jobs and businesses on the line in the aviation sector. Our industry is weathering the worst crisis in the history of civil aviation, it can scarcely afford another hammer blow like this.
“By removing the airside statutory concession, the Government is needlessly harming the revenue of retailers and airports. Passengers will be disincentivised from making purchases as they travel through the UK.
Key talking points about the new legislation
Source: The Moodie Davitt Report |
“Many foreign visitors will now choose to go elsewhere, attracted by the beneficial tax and excise regimes of our European competitors.
“I strongly urge the Government to reconsider, review its proposal and act in partnership with its once world-beating aviation industry to secure jobs, businesses and livelihoods across the country.”
Dee’s reaction mirrors that of UK Travel Retail Forum President Francois Bourienne (also Chief Commercial Officer at AGS Airports, embracing Aberdeen, Glasgow, Southampton airports) in an interview with The Moodie Davitt Report on Saturday.
Bourienne said: “The anger within the UK industry is palpable. This short-sighted proposal was announced without any discussion with industry, no impact assessment, and no warning. It places UK airports and retailers at a massive disadvantage and will simply send millions in retail revenue to airports in Europe and further afield.
“If all tax free sales are to be ended (other than liquor & tobacco), it will have a substantial and immediate impact on UK airports. Hundreds of millions will be lost in sales, & thousands of jobs are at risk – at a time when the industry is already on its knees. This could be the final nail in the coffin of several UK regional airports.”
We will bring you more reaction to this breaking story soon.
