Hello phoradan-ga,
Whether duty free shops are beneficial is the subject of debate. Here
is a handy list of ten reasons why duty free shops are said to be
beneficial:
"1999 and the threat to Duty Free"
Dublin Airport Online [Unofficial site, maintained by Donal Kane]
http://www.iol.ie/~dkane/page5.html
It appears that the primary rationale for duty free shops is as
follows: Most governments impose duties on imported goods, in order
to make domestic goods cheaper by comparison for domestic shoppers.
However, there is no need to impose that duty on foreign goods bought
by departing foreign travelers. Thus, the duty can be waived for such
persons.
"Duty-Free Discounts", by Tom Verde
The Savvy Traveler
http://www.savvytraveler.com/show/features/1999/19991225/dutyfree.shtml
"Duty Free and VAT Refund Shopping for the International Passenger:
What is duty free shopping?" (10/31/2002)
PassportInfo.com
http://www.passportinfo.com/dutyfree.htm#What%20is%20duty-free%20shopping?
As noted in the list of reasons for duty free shops, the duty free
sector is large and profitable, and is said to generate jobs and money
for the country supporting it. However, some say that it has harmful
effects or is unnecessary.
The following page asserts that duty free is a cover for smuggling.
"Tobacco taxation in the 2001 Budget: 4.7.5 End international duty and
tax free sales" (February 2001)
Action on Smoking and Health
http://www.ash.org.uk/html/smuggling/html/tax2001.html#_Toc507230505
In the European Union, duty free shops were eliminated as nonsensical
in a single market.
"Last day of duty-free within EU" (June 30 1999)
RTÉ Interactive News
http://www.rte.ie/news/1999/0630/duty.html
In Australia, there is a proposal to abolish duty free sales to
Australians, as well as to negotiate elimination of duty free with
certain countries such as New Zealand much as the EU has done.
"Tax Flight?" (December 2002)
The Australia Institute
http://www.tai.org.au/WhatsNew_Files/WhatsNew/DutyFree.pdf
Still, as this last report suggests, some people and governments argue
that duty free shops are an economic benefit to their country.
I hope that this information is helpful.
- justaskscott-ga
Search terms used on Google:
"what is duty free"
"reasons for duty free"
"rationale for duty free"
"concept of duty free"
"duty free" "shannon airport" [Note: Shannon Airport was where "duty
free" began.]
[I also searched for other terms, but the listed terms resulted in the
pages I have cited.] |
