Is
this the start of the abolition of Duty Free tobacco?
With fast approaching nearly 200
countries signing up the Framework Convention on Tobacco Control
(W.T.O.) one of the objectives to prohibit or restrict Duty Free
tobacco sales. The underlying rationale of this is that people will
instead have to purchase tobacco on the domestic market at the taxed
price. As a result it is not difficult to image the hundreds of
millions if not billions this would generate into the various
government treasuries thus achieving the twin objectives of reducing
tobacco consumption and raising revenue.
The Tobacco Industry and Duty
Free operators have all traditionally countered that this type of
operation is tightly controlled (i.e. under Governments agencies) and
the total amount of duty free represents such a very small percentage
of overall sales compared to the domestic market. It is difficult to
argue though as why the Tobacco industry lavishes such huge amounts
of money on promotions, advertising, etc for such meagre returns –
unless Duty Free represents massive “shop window” advertising
opportunity for the industry.
So,
with the reductions in tobacco consumption, many public places,
offices, bars and restaurants barring smoking it would seem the
abolition of tobacco in Duty
Free is inevitable..... so what is stopping it?
While there are nearly 200
nations across the globe supporting this cause in principal the
“collectiveness” for the cause is pulled apart by social,
economic and political differences whereby very few of the countries
actually function at the same speed of thought and action.
Inevitably, this will prolong the final outcome.... but will it
happen and when?
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