Vol. 472 No. 8
34 Mr. Andrews asked the Minister for Finance if his attention has been drawn to EU regulations abolishing duty free sales for international travellers within the EU in the future; the action, if any, he intends to take to ensure that Ireland is exempt on the grounds that this country is without a landbridge or link to at least one other member state; and if he will make a statement on the matter. [22192/96]
The provisions of EU Directives 91/680/EEC and 92/12/EEC, agreed as part of the tax measures establishing the EU Single Market, authorise the continuation, until 30 June 1999, of duty free shopping facilities for intra-Community travellers. This arrangement was agreed to allow the duty free operators time to diversify their activities. The Commission recently confirmed their opposition to the retention of duty free shopping beyond 1 July 1999.
At the ECOFIN Council on 11 November 1996, I raised the issue but did not receive much support from my ministerial colleagues for a proposal to commission an independent study into the effect of the abolition of the duty free sales post 1 July 1999.
There are no plans to terminate duty free or tax free sales for travellers to non-EU destinations in 1999. That portion of the duty free business will remain and for certain airports, particularly Shannon Airport, the non-EU traveller is a very important source of revenue. Other state airports also handle traffic to and from non-EU locations.
