Airport VAT scam: George Osborne’s comments suggest a brighter future for travellers

For now travellers can look forward to a slightly better retail experience

Retailers have been urged by the Treasury to cut their prices at airports to reflect VAT discounts they receive for travellers leaving Europe amid claims that some stores are using the relief to boost their profits (PA)

One irritation that does not seem likely to survive 2016 is the great airport VAT scam, first revealed by The Independent some months ago and – eventually – shamefacedly owned up to by the retailers concerned, all of which should have known better.

For many years these businesses have pocketed a VAT concession on travellers’ purchases at airports rather than pass the savings on, hence the routine requests to see boarding cards when buying items. Now the Chancellor, George Osborne, has said the practice is “simply unacceptable” and launched a review with the aim of ending this egregious example of corporate tax abuse. Making companies play fair with consumers and personal taxpayers has never been easy, but Mr Osborne has shown some awarness of the strength of public feeling on tax dodging, great and small.

The sooner this lark is brought to an end the better, and more clarity and transparency across the “duty free” sector would be very welcome indeed. Perhaps this could be linked to a better definition of what “personal use” means in the context of bringing large quantities of alcohol and tobacco products across the Channel, still quite a lively trade. After all, these often harmful substances are taxed for a reason – to discourage consumption.

Still, for now travellers can look forward to a slightly better retail experience; now all we have to do is work out what to do with Heathrow...