Slovenian border store deadline extended

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Border store operators in Slovenia have been ordered to make the final phase of transformation to duty-paid outlets by 1 June. The government has taken a decision to extend the deadline by which duty-free shops should be transformed into ordinary domestic shops from 31 March to 31 May.

An act to transform duty-free shops into duty-paid shops would have been adopted in parliament by the end of 2000 but was delayed by opposition. The act gives duty-free shops at land border crossings with Austria and Italy 90 days to transform.

Taxation on border operators was already increased last year. They currently pay 90% of the rate of VAT plus the full rate of duty and 10% is effectively tax-free. Foreign trade manager for ERA Group Alenka Goranc told TRW, "The situation has already changed a lot. The government is trying to close duty-free shops but most people don't agree. The problem today is loss of jobs and maintaining distribution and the necessary licences. Most border stores are small shops of less than 200sq m (2,152sq ft) and sales are down by 30% to 45%. They cannot be easily changed to food, gifts or other non-food shops because of their location," she said.

An estimated 1,000 jobs have been lost in the Slovenian border trade. Approximately 90% of the country's border stores are affected--those along the EU borders with Italy and Austria but not Croatia or Hungary.