Eurocommerce backs scrapping of duty free sales

Retail organisations across Europe backed the scrapping by the European Union of duty-free sales last night, with the British Retail Consortium and the Belgian distributors' federation "abstaining" from the terms of a letter sent to EU leaders in Brussels.

Eurocommerce, the body that represents the EU interests of retail and wholesale traders, says duty-free sales must end as planned next June. "The tax exemption for duty-free shops leads to distortions of competition which fall back on regular commerce that has to pay taxes and... leads to considerable tax losses for the budgets of the member states," the letter says.