My pal in the travel industry was most clear. This summer sees the Olympics held in Paris. It’s the first time the Games will have been held since the ending of Covid and the lifting of flight restrictions. It’s going to be a bumper season for the European tourist trade, as a result. Except for London.
That was his message: other European capitals and cultural centres could look forward to a bonanza as visitors from across the globe take advantage of the ending of the outbreak, unleash the money they saved during the pandemic and buy holiday packages that include the added attraction of the Olympics.
But not London. Why? Because our government insists on charging every overseas visitor VAT of 20 per cent.
Next to watching the sporting action, dining and visiting the sights, the other activity high on the tourist wishlist this summer is shopping. They want to come to Europe and experience the designer boutiques and department stores and the accompanying glamour, and they’ve got cash to spend.
They’re not stupid, though. Why bother to buy that bag in Bond Street when it’s 20 per cent cheaper in the Champs-Élysées or Corso Vittorio Emanuele II? In fact, given that time is precious and faced with that extra cost, why go to London at all?
The UK, led by Rishi Sunak’s administration, is shooting itself in the foot where the 20 per cent levy is concerned.
Naming Sunak is deliberate. For it was Sunak who, as Chancellor, reintroduced the charge in 2021. Now, as Prime Minister, he is under pressure to repeal the measure.
That, however, entails him admitting he made an error in the first place and as we know, politicians, or at least those as stubborn as Sunak, do not like conceding on anything.
The Spring Budget is due next week and campaigners were hoping that Jeremy Hunt, the current Chancellor, would put the government’s hand up and scrap the tax.
But Nigel Huddleston, the minister responsible for the tax regime, is seemingly dampening the prospect of change.
In a letter to one of the leading campaigners, he writes that it is “not possible to introduce the same system as before, given that it would now need to be open to visitors from the EU as well as the rest of the world. Any new scheme, no matter the design, would take time to legislate for and implement in order to prevent non-compliance risks and ensure operation”.
Then comes the kicker: “The Chancellor has been clear that being responsible with the public finances is a key priority. A new VAT-free shopping scheme could subsidise a large amount of tourist spending that already occurs without a tax relief in place, without bringing any direct benefits to the British public.”
So, they can’t see the point, in other words. Tourists are busy, purchasing away, with a 20 per cent surcharge. Axing it would have little effect.
The UK, led by Rishi Sunak’s administration, is shooting itself in the foot where the 20 per cent levy is concerned.
This is hokum. Huddleston may want to ask himself why 400 business leaders have called for its abolition. This isn’t a tax, the ditching of which benefits them directly. It doesn’t provide an immediate boost to their bank balances.
Of course, it may as they predict an uplift in tourism and consumption, but that’s for the future. The main, instant gain will be in persuading foreigners to visit London and the UK and to spend – and not choose to go and buy elsewhere.
What’s also nonsense is Huddleston’s assertion that dropping the tax is somehow complex. It isn’t. The tax was introduced only three years ago. The same wording that applied then can surely be used again, this time without the need to spell out an exclusion for EU visitors.
Huddleston was replying to a letter from Sacha Zackariya, chief executive of ChangeGroup and Prosegur Change – a British-based retail foreign exchange and bureau de change company, urging the government to return immediately to how we were.
Zackariya is keen that we “capitalise on tourists visiting the Paris Olympics this summer and encourage them to visit the UK at the same time and benefit from the same VAT-refund scheme they would otherwise be able to access in Madrid, Paris, Berlin or Milan”.
He wants Huddleston and his Treasury colleagues “to reintroduce exactly the same system we had before, which will be quick and simple. Any complex new IT system will be fraught with delays and errors.”
Nor will the extension of the tax-free policy to visitors from the EU be a handicap. Quite the reverse. This would be a Brexit benefit, as 500 million EU shoppers could take advantage of the UK’s measure and enjoy a 20 per cent discount. Britain’s hard-pressed retailers would receive a fillip.
Sir Rocco Forte, the hotelier, goes so far as to describe it as “an enormous Brexit opportunity”.
Lifting the tariff would not require a primary statute wending its way around Parliament; much quicker, secondary legislation would suffice.
It’s not as if the tax is a major earner for the Treasury. The Office for Budget Responsibility has previously estimated that restoring VAT-free shopping would cost the government £2 billion in lost revenue. This is out of a total tax take of around £800 billion.
Despite Huddleston’s reticence, businesses remain confident that the measure will go. Whether that occurs in time to cash in on the Paris Olympics is a different matter.
In any event, it does require Sunak to eat humble pie. Hopefully, he will see it makes sense. Everyone makes mistakes and can be forgiven, Rishi, even you.
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
UAE currency: the story behind the money in your pockets
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
Voy!%20Voy!%20Voy!
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MATCH INFO
Uefa Champions League semi-finals, second leg:
Liverpool (0) v Barcelona (3), Tuesday, 11pm UAE
Game is on BeIN Sports
Results
%3Cp%3E%0D%3Cstrong%3EElite%20men%3C%2Fstrong%3E%0D%3Cbr%3E1.%20Amare%20Hailemichael%20Samson%20(ERI)%202%3A07%3A10%0D%3Cbr%3E2.%20Leornard%20Barsoton%20(KEN)%202%3A09%3A37%0D%3Cbr%3E3.%20Ilham%20Ozbilan%20(TUR)%202%3A10%3A16%0D%3Cbr%3E4.%20Gideon%20Chepkonga%20(KEN)%202%3A11%3A17%0D%3Cbr%3E5.%20Isaac%20Timoi%20(KEN)%202%3A11%3A34%0D%3Cbr%3E%3Cstrong%3EElite%20women%3C%2Fstrong%3E%0D%3Cbr%3E1.%20Brigid%20Kosgei%20(KEN)%202%3A19%3A15%0D%3Cbr%3E2.%20Hawi%20Feysa%20Gejia%20(ETH)%202%3A24%3A03%0D%3Cbr%3E3.%20Sintayehu%20Dessi%20(ETH)%202%3A25%3A36%0D%3Cbr%3E4.%20Aurelia%20Kiptui%20(KEN)%202%3A28%3A59%0D%3Cbr%3E5.%20Emily%20Kipchumba%20(KEN)%202%3A29%3A52%3C%2Fp%3E%0A
Globalization and its Discontents Revisited
Joseph E. Stiglitz
W. W. Norton & Company
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
The biog
Name: Shamsa Hassan Safar
Nationality: Emirati
Education: Degree in emergency medical services at Higher Colleges of Technology
Favourite book: Between two hearts- Arabic novels
Favourite music: Mohammed Abdu and modern Arabic songs
Favourite way to spend time off: Family visits and spending time with friends
Disability on screen
Empire — neuromuscular disease myasthenia gravis; bipolar disorder; post-traumatic stress disorder (PTSD)
Rosewood and Transparent — heart issues
24: Legacy — PTSD;
Superstore and NCIS: New Orleans — wheelchair-bound
Taken and This Is Us — cancer
Trial & Error — cognitive disorder prosopagnosia (facial blindness and dyslexia)
Grey’s Anatomy — prosthetic leg
Scorpion — obsessive compulsive disorder and anxiety
Switched at Birth — deafness
One Mississippi, Wentworth and Transparent — double mastectomy
Dragons — double amputee
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
WRESTLING HIGHLIGHTS
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
More on Quran memorisation:
Sinopharm vaccine explained
The Sinopharm vaccine was created using techniques that have been around for decades.
“This is an inactivated vaccine. Simply what it means is that the virus is taken, cultured and inactivated," said Dr Nawal Al Kaabi, chair of the UAE's National Covid-19 Clinical Management Committee.
"What is left is a skeleton of the virus so it looks like a virus, but it is not live."
This is then injected into the body.
"The body will recognise it and form antibodies but because it is inactive, we will need more than one dose. The body will not develop immunity with one dose," she said.
"You have to be exposed more than one time to what we call the antigen."
The vaccine should offer protection for at least months, but no one knows how long beyond that.
Dr Al Kaabi said early vaccine volunteers in China were given shots last spring and still have antibodies today.
“Since it is inactivated, it will not last forever," she said.
Kamindu Mendis bio
Full name: Pasqual Handi Kamindu Dilanka Mendis
Born: September 30, 1998
Age: 20 years and 26 days
Nationality: Sri Lankan
Major teams Sri Lanka's Under 19 team
Batting style: Left-hander
Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)
The specs
Engine: 3.0-litre 6-cyl turbo
Power: 374hp at 5,500-6,500rpm
Torque: 500Nm from 1,900-5,000rpm
Transmission: 8-speed auto
Fuel consumption: 8.5L/100km
Price: from Dh285,000
On sale: from January 2022
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
CHATGPT%20ENTERPRISE%20FEATURES
%3Cp%3E%E2%80%A2%20Enterprise-grade%20security%20and%20privacy%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Unlimited%20higher-speed%20GPT-4%20access%20with%20no%20caps%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Longer%20context%20windows%20for%20processing%20longer%20inputs%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Advanced%20data%20analysis%20capabilities%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Customisation%20options%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Shareable%20chat%20templates%20that%20companies%20can%20use%20to%20collaborate%20and%20build%20common%20workflows%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Analytics%20dashboard%20for%20usage%20insights%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Free%20credits%20to%20use%20OpenAI%20APIs%20to%20extend%20OpenAI%20into%20a%20fully-custom%20solution%20for%20enterprises%3C%2Fp%3E%0A
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
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More from Rashmee Roshan Lall
The specs
Engine: 3.8-litre twin-turbo flat-six
Power: 650hp at 6,750rpm
Torque: 800Nm from 2,500-4,000rpm
Transmission: 8-speed dual-clutch auto
Fuel consumption: 11.12L/100km
Price: From Dh796,600
On sale: now
FROM%20THE%20ASHES
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Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
Mohammed bin Zayed Majlis
ASIAN%20RUGBY%20CHAMPIONSHIP%202024
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