The scrapping of VAT-free shopping cost UK retailers £1.5bn in lost sales last year.
A study by the Association of International Retail found that French, Italian and Spanish businesses had seen a 98% rise in sales from international shoppers, when compared with 2019. British retailers, however, suffered a 28% decline.
Ministers withdrew VAT-free shopping for non-EU international visitors in January 2021.
Last week, business owners gathered in Savile Row in London to protest against the “tourist tax” as 400 companies, including Chelsea landlord Cadogan, signed a letter to chancellor Jeremy Hunt calling for the policy to be reinstated.
