EU plans to severely limit duty free sales

IRISH duty free sales are to be severely reduced by European Commission plans to divert duty free sales away from smaller regional airports to the main EU hub airports in a move that could lead to huge financial losses for the airports.

The Commission Excise Duty proposal would restrict passengers to purchasing duty free goods in only the final airport of departure before leaving the EU.

Irish MEP Colm Burke, who is campaigning against this move, claimed the legislation would cause job losses at all the country’s regional airports including Cork and Shannon.

“Under the current arrangements, if a passenger is travelling from Cork to Paris to Dubai, they can purchase duty-free items at Cork Airport,” said Mr Burke, a member of the internal market committee of the European Parliament.

“Under the new proposals they will only be able to purchase duty free goods in Paris. This proposal is not acceptable and could lead to job losses in the regional airports and could also affect Dublin Airport.”

He said the Government must resist the proposal as many of the smaller airports were barely profitable and survived on commercial revenues.

“Once a passenger has a transport document for air travel confirming that the ultimate destination is situated outside the EU they should be allowed to purchase duty free items from the airport where they started their journey,” he said.

It is understood the European Travel Retail Council, which represents the duty free sector, has made a submission to the European Commission demanding changes in its proposal.

It is concerned that the proposed measure will simply divest much needed revenue from duty free sales away from smaller regional airports to the EU hub airports.

Last night the Dublin Airport Authority said the loss of duty free sales would have a dramatic impact on regional airports. However, it said the Slovenian presidency of the European Commission had submitted an amendment to the legislation that would allow duty free to be bought in the airport of origin if the final destination was outside the EU. He said it was likely that would be accepted by all signatories.