Delivering a fresh Brexit boost, Sajid Javid said the Government will change the law so all duty on alcohol and tobacco will no longer apply.
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Brits will get duty free back for trips to Europe under a No Deal Brexit Credit: Getty - Contributor
And sales of other products will free of the 20 per cent VAT rate too.
It is understood that the move will cost the Treasury between £150million and £200million year.
It means that a 75cl bottle of Campo Viejo wine currently costing £8.29 would be just £4.41 in a duty free shop, thanks to the axing of 20 per cent VAT and £2.23 excise duty.
The Chancellor also announced he was ploughing £400 million to create rapid charging points for electric vehicles, which would halve the time it takes to recharge a family car to just 20 minutes.
An initial £70 million investment will create 3,000 charge points - more than doubling the number across the UK to 5,000 by 2024.
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 holiday to Europe will be able to make savings by buying alcohol and other UK products before they leave.
Government insider said the move would also boost Britain's tourism industry by attracting more European visitors who would save on shopping before they return home.
The move is designed to help rejuvenate neglected coastal communities, ferry ports and regional airports while also benefiting Britain's cruise ship industry.
Germany ‘fears for No Deal’
By Nick Gutteridge
GERMANY’S economy will slip to zero growth this year if there is a No Deal Brexit, the country’s top industry body warns.
The Federation of German Businesses (BDI) claims recession is “more likely” with Germany’s manufacturing industry contracting already.
BDI boss Joachim Lang says “high tariff barriers plus transport and logistics problems in trade with the UK” were key No Deal threats to Germany.
The law change is due to be rushed through Parliament when MPs return next month in a Statutory Instrument — secondary legislation that transfers powers from the EU to the UK.
Mr Javid said last night: “As we prepare to leave the EU, I’m pleased to be able to back British travellers.
“We want people to enjoy their hard-earned holidays and this decision will help holidaymakers’ cash go that little bit further.”
Brits will get duty free back for trips to Europe under a No Deal Brexit Credit: Getty - Contributor