Hunt urged to ditch 'tourist tax' within weeks to boost London

JEREMY Hunt was urged today to scrap the "tourist tax" within weeks and give London a significant economic boost.

- Nicholas Cecil 

The Chancellor has asked the Office for Budget Responsibility to probe the benefits and disadvantages of the levy. It is set to report back before the March 6 Budget.

As chancellor, Rishi Sunak abolished tax-free shopping for tourists in 2020.

The perk had allowed tourists from outside the EU to claim back their VAT on goods bought in the UK, making them 20 percent cheaper.

The Treasury argued that axing the levy now could cost up to £2 billion a year in lost taxes. But campaigners insist the analysis did not take fully into account the broader boost to the wider economy.