Duty Free Allowances

Treasury written question – answered on 21 March 2023.

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Photo of David Mundell David Mundell Conservative, Dumfriesshire, Clydesdale and Tweeddale

To ask the Chancellor of the Exchequer, whether his Department has conducted research on the potential economic impact of duty-free shopping in other countries for arriving passengers; and if he will make an assessment of the potential economic impact of introducing duty-free shopping for passengers arriving in the UK.

Photo of James Cartlidge James Cartlidge The Exchequer Secretary

Duty-free on arrival would place additional pressure on the public finances to which excise duty makes a significant contribution.

Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere.

Although there are no plans to introduce such a scheme, the Government keeps all taxes under review and considers all available evidence as part of the tax policymaking process.

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