Why do airports have tax free areas in between although they are on a country’s land and are selling goods which should normally be taxed outside?
In: Economics
Most tax systems have rules stating that goods to be exported are not taxed before export. This is to avoid giving a disadvantage to exported goods when compared to other exporting countries.
Duty free shops in airports are set up on this basis – they are only available to _outbound_ travellers who will technically be exporting the goods. This is why you have to show your boarding pass at these shops, to prove you’ll be leaving the country.
they have people coming from other countries too, they can take their tax free money from those spots
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