Australian Govt are pushing for ban on arrivals tobacco

According to leaked reports in Australia the government there is edging closer to a ban on all arrivals duty free tobacco. It is suggested that that the reasoning behind this ban will lead to increased government revenues through taxation and not for health reasons. An independent analysis by Deloitte Access Economics calculates the net tax gain to be in excess of A$17 million per annum although this does not take into account additional Customs enforcement costs.

This ban would have a deep affect of the Australian duty free industry as Australia's Arrivals Duty Free Shops would be covered by the ban.
 
This, however, has brought a strong response from the Australian Duty Free Association who feel the government have overstated the additional tax revenue it would achieve and not taken into consideration the damage this will cause to the duty free industry and loss of revenue to operators and airports.

There is no date set for the implementation of this ban.

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?