Sunak crushes expectations for a change in the decision to eliminate the UK tourist tax break.

British Prime Minister Rishi Sunak claimed that a now-defunct tax incentive for visitors moved almost entirely to a tiny region of central London, dashing the dreams of shops and companies pushing for its reinstatement.

Prior to 2021, non-EU citizens were entitled to recover sales tax on purchases made in Britain, just as they are currently permitted to do when making purchases across the 27-member union.

Businesses like the upscale label Burberry, as well as high-end stores, hotels, restaurants, and tailors, have expressed their displeasure that foreign tourists increasingly prefer to spend their money in cities like Paris and Milan rather than London.

According to Sunak, he shied away from discussing tax policy due to the potential impact on markets.

But he said it was important to note that "a very small area in central London" received 97% of the benefits of the tourist tax exemption.

In reference to the government's initiative to spread prosperity around the nation, he stated on Wednesday, "From a levelling up perspective, it was a very specifically concentrated tax break for people."

(Sources: investing.com, reuters.com)