Author (Person) | Christiansen, Vidar, Smith, Stephen |
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Series Title | CESifo Economic Studies |
Series Details | Vol.50, No.2, Summer 2004 |
Publication Date | June 2004 |
ISSN | 1610-241X |
Content Type | Journal | Series | Blog |
Abstract: In 1999 the EU abolished duty-free on intra-EU travel. Other European countries and many countries outside Europe still retain duty-free shopping for international travellers, as does the EU in relation to external travel. This paper looks at national policy interests in the retention, or further abolition, of duty-free. We note that these will relate closely to the structure of competition in the duty-free market, and to the tax levels on high-street sales in different countries. The existence of duty-free trade requires that countries have reasons both to admit duty-free goods and to permit their sale to departing passengers. We argue that low-tax countries might be more likely to perceive gains from unilateral abolition of duty-free sales to departing passengers, while high-tax countries would only benefit from concerted action to abolish duty-free. |
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Source Link | http://www.cesifo-economic-studies.de/ |
Subject Categories | Internal Markets |
Countries / Regions | Europe |
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