BRITS will get duty free back for trips to Europe under a no deal Brexit, The Sun can reveal.
Chancellor Philip Hammond will change the law so all duty on alcohol and tobacco will no longer apply and sales of other products will be free of the 20 per cent VAT rate too.
The move will cost the Treasury between £150 million to £200 million a year, government sources told The Sun.
Duty free sales within the EU were axed by Brussels two decades ago.
The changes will apply to all purchases made in airports, ports and ferries on outbound journeys.
It means Brits going on a holiday to European destinations will be able to make savings by buying alcohol and other UK products before they leave.
Government insiders said the move would also deliver a boost for Britain’s tourism industry by attracting more European visitors to UK destinations because they would be able to make savings on shopping before they return home.
‘REJUVENATE REGIONAL AND COASTAL COMMUNITIES’
The move is designed to help rejuvenate neglected coastal communities, ferry ports and regional airports, while also benefiting Britain’s cruise ship industry.
The law change was due to be rushed through Parliament this week in a Statutory Instrument – secondary legislation that transfers powers from the EU to the UK.
But it has been delayed by No10 jitters.
Whitehall sources said the change in law won’t be made until next week at the earliest because Theresa May “doesn’t want to make no deal look attractive” ahead of next week’s crunch Commons vote on her Brexit deal.
The PM also fears that the move would fuel support for no deal ahead of a Commons vote next Wednesday whether to pursue a no deal Brexit if her deal falls the previous day.
Ministers are also hoping to bring back duty free if Mrs May’s deal does pass – but Brits will have to wait until after the transition period to benefit.
The return of duty free sales comes after a lengthy campaign from dozens of Tory MPs.
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Dover MP Charlie Elphicke said the move would help level the playing field between Britain’s regional airports and their bigger rivals.
He told The Sun: “We’ve been fighting hard to ensure that ports and regional airports with flights to the EU get to benefit from duty free sales just as much as Heathrow and Gatwick.
“This will deliver a big boost for tourism – helping our coastal communities and ferry industry after Brexit.”
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