Mr Duffy said: “We’re the only country in Europe that doesn’t offer [the perk].
“So either we’ve figured out something that nobody else knows, or it’s another burden for retail to deal with.
“We want to be an attractive destination for tourists and part of touring and being on holiday is shopping.
“It just seems crazy to us.”
He argued the absence of VAT-free shopping had impeded the UK’s recovery from the pandemic.
“The UK just simply missed out as an economy. Europe disproportionately benefited.”
His comments come as Watches of Switzerland posted a 2pc rise in total sales over the year to April 1, but said sales in the UK and Europe were down 5pc.
Statutory profits before tax fell 40pc to £92m.
As well as the impact of the tourist tax, the company has had to grapple with price increases linked to the rising price of gold.
And “aspirational” shoppers are spending less money because of high interest rates and the cost of living crisis, he said.
Mr Duffy said: “We’ve had a wee bit of a perfect storm if you look back, particularly the second half of the calendar [year] 2023.”
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