The fact that the Commission came down so heavily on duty free while singularly failing to tackle the far more fundamental issue of the harmonisation of indirect taxation was what most vexed the drinks and travel industries prior to abolition. Now abolition is a fact of life, however, it is somewhat ironic that those tax and duty disparities now represent significant business opportunities. Because, while liquor is still being sold duty paid in airports all across Europe, the potential for liquor sales is naturally strongest in low tax/duty countries.
Winds of change keep travel retail industry guessing
When the European Commission finally abolished intra-EU duty free, the jury was out regarding how travel retail liquor sales would survive. Sixteen months on only some of the answers have been provided. Ben Cooper argues that the search for the model sales pitch means more transition is ahead.
October 16, 2000