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By City AM reporter Can a relatively small change to VAT laws really cost the country as much as West End retailers suggest? To the many of us who don’t choose our next weekend break on the back of a tax-break on our next Gucci handbag, the idea seems ludicrous. But there is a reason so many retailers and tourism chiefs are saying the same thing: it really does matter. The removal of VAT-free shopping for foreigners ‘saves’ the Treasury £2bn – a not insignificant amount, but trifling in the grand scheme of the nation’s budget. But that £2bn, and the cockamamie way we develop tax policy, makes …

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