Fed: Abolish duty free tax break says Australia Institute
CANBERRA, Dec 27 AAP - Duty free concessions for travellers cost taxpayers $300 milliona year in lost revenue and should be abolished, a thinktank said today.
"They are just a hidden perk for the rich," the Australia Institute Director Clive Hamilton said.
International travellers can buy duty-free cigarettes and spirits for about half thenormal retail price because the purchases were exempt from excises and GST.
"Australians in the wealthiest 20 per cent of households spend five times more on overseasholidays than those in the lowest 20 per cent of households," Dr Hamilton said in a statement.
"There is no good reason for persisting with the antiquated duty free system otherthan propping up privatised airports with a tax break paid for by the rest of the community.
"Other countries are doing away with this tax lurk and so should we. Wealthy Australiansbenefit most from the duty free system. Cheap cigarettes and alcohol are not availableto those who cannot afford to travel overseas."
Dr Hamilton also said making cigarettes cheaper for travellers was inconsistent withthe health objectives of tobacco taxes.
"The Australian government encourages smokers to buy cigarettes for half price on aQantas plane, but has made smoking them on the plane illegal," he said.
Dr Hamilton said the government should abolish the concession for Australians and shouldnegotiate international deals to restrict duty free shopping.
AAP toc/nw/sb
KEYWORD: DUTY
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