Heathrow, Britain’s biggest airport, is preparing a legal challenge against the government’s decision to scrap VAT-free shopping for international tourists on goods such as perfume, clothes and electronics.
In a letter to UK finance minister Rishi Sunak from Heathrow’s chief executive John Holland Kaye, co-signed by tax refund specialist Global Blue and the World Duty Free Group, the airport said it wants a judicial review of the decision to abolish the VAT Retail Export Scheme and withdraw airside tax-free shopping in all UK airports at the end of this year.
We were ... deeply shocked and concerned ... that the Government will ... withdraw tax-free shopping altogether, making the UK the only country in Europe not to offer such a benefit to international visitors.
The move, which comes as the aviation and retail industries are already struggling amid a second Covid-19 lockdown, would cause "irreparable and unnecessary damage to high streets and airports across the UK".
“We believe there are solutions available that can address concerns, while protecting the UK’s competitiveness as a shopping destination and airport retail in a year that will be so critical as it recovers from the worst year in history,” the claimants involved said, in a joint statement sent to The National. “All are responsible for employing thousands of people and securing billions of inward spend each year. We are exploring all options available to us on this decision.”
In September, the government said tax-free shopping would end for all visitors to the UK after the end of the Brexit transition period on December 31. The move will prevent non-EU visitors from receiving a VAT refund on items they buy in Britain and take home in their luggage. It will also stop tax-free sales on goods such as clothes, electronics and perfumes bought at airports. VAT stands at 20 per cent.
Industry bodies had expected the government to extend the scheme to include EU nationals once the Brexit process was completed.
Now they fear that wealthy Middle East and Chinese travellers will be discouraged from flying into the UK to shop once the tax rebates are abolished.
“In this consultation period the Government stated in March that “following the transition period, the UK is minded to extend airside tax-free sales to those travelling to the EU,” John Holland Kaye said in the letter.
“We were therefore deeply shocked and concerned to learn that the Government will instead withdraw tax-free shopping altogether, making the UK the only country in Europe not to offer such a benefit to international visitors."
In September, the government said the post-Brexit changes would also bring benefits, with EU passengers travelling from the UK able to buy alcohol and tobacco without paying VAT and excise duty once they have passed through security controls.
It said overseas visitors would still be able buy VAT-items in stores and have them sent directly to their overseas addresses.
With less than 10 per cent of non-EU visitors to the UK using the VAT refund shopping scheme, extending the scheme to EU visitors could cost up to £1.4bn ($1.8bn) a year, according to HM Treasury.
In the letter, Mr Holland Kaye said the government was yet to publish a comprehensive economic impact assessment of its decision, and said the Treasury had “failed to take in to account a second wave which has plummeted millions more into lockdown and unable to work as hotels, ‘nonessential’ retail and tourism numbers remain decimated”.
“Coupled with slow progress behind a testing regime that will facilitate safe tourism into the UK, and no meaningful recovery plan for struggling sectors, this decision will put us on the back foot as the world looks on post-Brexit,” he wrote.
Last month, UK retailers, hoteliers and airports said scrapping VAT-free shopping would put 70,000 jobs at risk and trigger a £10bn reduction to spending in British stores and cost the UK finance ministry £2bn in lost tax revenue.
Mr Holland Kaye's letter said a further 25,000 UK jobs reliant on tourism spend, such as positions in theatres, restaurants and hotels, would also be put at risk from the move.
"It is not too later for the government to review this decision," Mr Holland Kaye said.
Heathrow was overtaken as Europe's busiest airport for the first time by Paris Charles de Gaulle late last month, amid falling air travel demand during Covid-19, as almost 200 airports in the continent face going bust by the end of the year, according to ACI Europe.
Retail executives including leaders from Fortnum & Mason, Ted Baker and Paul Smith said last month that the tax changes would encourage tourists to "spend their money in Paris, Milan or Madrid" rather than Britain.
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Roll of honour 2019-2020
Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain
West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership
UAE Premiership
Winners: Dubai Exiles
Runners up: Dubai Hurricanes
UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II
UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
NATIONAL%20SELECTIONS
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Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
Squads
Australia: Finch (c), Agar, Behrendorff, Carey, Coulter-Nile, Lynn, McDermott, Maxwell, Short, Stanlake, Stoinis, Tye, Zampa
India: Kohli (c), Khaleel, Bumrah, Chahal, Dhawan, Shreyas, Karthik, Kuldeep, Bhuvneshwar, Pandey, Krunal, Pant, Rahul, Sundar, Umesh
Super%20Mario%20Bros%20Wonder
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Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Scoreline
Syria 1-1 Australia
Syria Al Somah 85'
Australia Kruse 40'
THE BIO
Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13
Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier
Favourite place to travel to: Any walkable city. I also love nature and wildlife
What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents.
Favorite place to go in the UAE: A quiet beach.
The story of Edge
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, established Edge in 2019.
It brought together 25 state-owned and independent companies specialising in weapons systems, cyber protection and electronic warfare.
Edge has an annual revenue of $5 billion and employs more than 12,000 people.
Some of the companies include Nimr, a maker of armoured vehicles, Caracal, which manufactures guns and ammunitions company, Lahab
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
COMPANY%20PROFILE
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UAE currency: the story behind the money in your pockets
Company%20Profile
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Ruwais timeline
1971 Abu Dhabi National Oil Company established
1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants
1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed
1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.
1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex
2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea
2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd
2014 Ruwais 261-outlet shopping mall opens
2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies
2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export
2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.
2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery
2018 NMC Healthcare selected to manage operations of Ruwais Hospital
2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13
Source: The National
'Gehraiyaan'
Director:Shakun Batra
Stars:Deepika Padukone, Siddhant Chaturvedi, Ananya Panday, Dhairya Karwa
Rating: 4/5
COMPANY%20PROFILE
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The%20specs
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More coverage from the Future Forum
The low down on MPS
What is myofascial pain syndrome?
Myofascial pain syndrome refers to pain and inflammation in the body’s soft tissue. MPS is a chronic condition that affects the fascia (connective tissue that covers the muscles, which develops knots, also known as trigger points).
What are trigger points?
Trigger points are irritable knots in the soft tissue that covers muscle tissue. Through injury or overuse, muscle fibres contract as a reactive and protective measure, creating tension in the form of hard and, palpable nodules. Overuse and sustained posture are the main culprits in developing trigger points.
What is myofascial or trigger-point release?
Releasing these nodules requires a hands-on technique that involves applying gentle sustained pressure to release muscular shortness and tightness. This eliminates restrictions in connective tissue in orderto restore motion and alleviate pain. Therapy balls have proven effective at causing enough commotion in the tissue, prompting the release of these hard knots.
UAE currency: the story behind the money in your pockets
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
COMPANY%20PROFILE
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Sholto Byrnes on Myanmar politics
PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
The Specs
Engine 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp (542bhp in GTS model)
Torque: 730Nm
Price: Dh649,000 (Dh549,000 for GTS)
