Watches of Switzerland boss: VAT tax holding back economy 

The boss of Watches of Switzerland said there was ‘absolutely no question’ the economy is being hurt by a controversial tourist tax. 

More than 320 industry chiefs from businesses ranging from hotels, theatres and transport providers have called for the return of VAT-free shopping for international visitors. 

The Mail is campaigning to abolish it. Brian Duffy, boss of the watch seller, said: ‘There is absolutely no question retailers and the economy are losing out.’ 

It was not just luxury brands, he said. ‘It’s not just retail, it is hospitality, theatres, many people have been outspoken from the hotel industry.’ 

His comments came as Watches of Switzerland posted a 19 per cent surge in sales to £1.54billion for the year due to roaring demand for luxury timepieces like Cartier and Rolex. 

Retailers say shoppers decide to spend in rival destinations such as Paris and Lisbon – and the Chinese are to start visiting Europe again after pandemic curbs were lifted Duffy said: ‘It seems crazy that as we are looking for growth and recovery, we are turning away from what is a very obvious business for the UK.’ 

Officials working for Chancellor Jeremy Hunt have asked for evidence of the tax’s ‘wider economic impact’. 

Businesses dispute scrapping the tax would cost £2billion a year, claiming a gain of £350million.