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Australian duty-free operators prepare for arrivals tobacco abolition decision

19 April 2012

Federal Budget to be announced May 8 will reveal whether industry anti-ban lobbying was successful

Duty-free operations in Australia are waiting to find out whether industry lobbying efforts have succeeded in preventing the government form pressing ahead with a proposed ban on arrivals duty-free tobacco.

The measure is intended as a measure to help balance the budget by raising domestic tax levels in Australia but independent reports suggest it will not have any noticeable effect. The decision whether to press ahead with the ban will be unveiled when details of the 2012 Federal Budget are unveiled on May 8.

A delegation from European Travel Retail Council (ETRC) visited the country last month to lobby the Australian government in conjunction with the Australian Duty Free Association (ADFA).

Nuance Australia CEO Derek Larsen told DFNIonline: “ADFA has worked very hard to support the case against arrivals tobacco abolition in conjunction with its global counterparts including the European Travel Retail Council (ETRC), and with ourselves as the dominant duty-free player in Australia, along with JR Duty Free, we have been very active in lobbying both sides of government.”

He added: “We will fight to the end on this and we are hoping that we will get a decision that is favourable in terms of tobacco on arrivals.”

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