Australian think-tank calls for end to duty-free

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A report compiled by public policy adviser the Australia Institute has called for duty-free in the country to be scrapped, describing it as "a hidden perk for the rich"

The report insisted that affluent Australians benefited most from low-price tobacco, liquor and beauty products, and argued that the existing duty-free system was 'antiquated'.

According to Australian press reports, Australia Institute director Clive Hamilton said the rationale behind duty-free - to offer goods such as liquor and tobacco at competitive prices - undermined the government's attempts to reduce consumption at home. "There is no good reason for persisting with the antiquated duty-free system other than propping up privatised airports with a tax break paid for by the rest of the community," argued Hamilton.

Full details and reaction will appear on TRW next week, with a report in the next issue of DFNI, out January 15.