Conservative Party chairman Greg Hands privately backs scrapping the disputed tourist tax, The Mail on Sunday understands.
He is the latest Cabinet Minister to pile pressure on Chancellor Jeremy Hunt to ditch the levy in a bid to boost British tourism.
Sources close to Mr Hands say the MP for Chelsea and Fulham understands the benefit that returning tax-free shopping would provide – particularly for businesses in Central London.
It comes after Business Secretary Kemi Badenoch revealed that firms often raise the issue of bringing back VAT-free shopping with her, and that she was 'keen for them to know we understand their arguments'.