Why are there Duty Free stores?

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After countries go thru all the trouble of taxing imports, why then would they allow ppl to just buy whatever they want duty free? Why do these shops exist? What benefit do they serve? And why are they only at airports?

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28 Answers

Anonymous 0 Comments

For the large part:

Many countries will waive some parts of the normal taxes on goods if they are immediately exported after purchasing. This often can make domestic goods more competitive on the market for departing international travelers

Many countries will also give a personal allowance exemption on certain/all imported goods, allowing some quantity to be brought home without import tax.

Also, it provides one last chance for the airport to hope to gain some additional profit from last minute gift purchases. International travel tends to draw a lot of more wealthy business and leisure travelers, the kind of shopper who could more likely consider purchasing luxury goods on impulse.

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