Langkawi. Duty free island.

         

          From the early unnoticeable beginning of first duty free shop at Shannon Airport in Ireland in 1947[1] to an expanded industry that grew constantly to encounter a network of around 2200[2] retail outlet stores with a multi billion tax free turnover across the entire world from Canada to Japan and South Africa to Iceland. Tiny spots on the geographical divided map, became international modest places, yet convinced by the succeed market success of major scale in the national limits of border lines. Beside the international spirit and free tax trade touch who benefit from lifted duties and tax exemption? Are the buyers or the sellers? Maybe both or perhaps someone else? What do government have to win from these merchandise paradises? First thing that come in untrained mind is the problematic conjunction of the state and companies where unpaid tax don't land in national budget but on other hand not to emphasize the importance of such collateral agreement would be incorrect. Yes, there is no tax on the products though it is also true that store's activities also create considerable amount of jobs within duty free zone and outside of it. The consumers are always glad to buy cheaper products therefore they benefit considerably from reduced prices, companies are even more grateful to increase the profit without tax contribution.

From small stores to ample islands 

          As child grew up it had required far more place and resources and eventually became an adult among an already existed house full of mature persons. So did even the duty free business from an odd yet familiar small stores to sizeable regions and ample islands as Livigno in Italy, Barbados, Canary Islands or many other islands, and of course not to forget the favorite place of yachtsmen in South East Asia, island of Lankawi. Alcohol, Tobacco, chocolate or fuel are only some of commodities you can get for retailed price but there is also a vast range of services that assist and promote attraction of tourists. Fresh duty free supplies and repair facilities for any yacht, all make Langkawi a wonderful home during the cold winters in Europe[3]. Though not every store offer duty free items the shopping fever could be felt or seen on the streets where people carry plastic bags filled with exaggerated amounts of cigarettes, bottles of alcohol or cookies.

          Duty free as part of international zone at the same time opened door for many neglectful actors to function unashamedly and exploit the generous tax exempt, and one of the worse are tobacco, flying and shipping companies.

Flight and maritime vessel Tax

           Airplanes and maritime shipping account for increased green gas emission the same as cars, buses or trucks but flight companies are exempt for paying jet fuel tax for international flights in the frame of duty free correspondence and the same applies for shipping vessels. Fuel for on land traffic  in many parts of the world have a tax rate ranging between 40 and 70% of the price[4] so why should airplanes and shipping companies go undercovered below tax free carpet layer? For recent in some places in Europe were introduced eco-taxes for aviation that range between 3 and 14% which is a progressive and shameful attempt to combat the greenhouse gases from CO2 emission.

To achieve sustainable goals for flight and water shipping emissions is required to implement the same tax policies as for road traffic with taxes in range of 40 to 70% as consequence the raised funds will be invested in developing new innovative eco-friendly, viable and renewable technology that will help transition to zero emission policy likewise for supporting general public to use railway transportation for shorter and longer trips. Marine fuel is 2,700 times dirtier than road diesel[5] thus to allow this phenomenon to continue it's poisoned track would be equal to legitimate numerous negative consequences and still remain confident and happy with that. The health, environment and sustainable economic growth should be the ground as starting point for an attentive and responsible society that care and take serious measures regarding the future generations and prosperity of our home planet.

          There is no quick solution to the global problems and is far more important to prevent and move in the right direction with small but steady steps from human and ecological disaster towards public security, wealth and persistent natural world.   

Langkawi, Malaysia | December 5, 2019

Source

[1]. https://en.wikipedia.org/wiki/Duty-free_shop - Duty-free shop
[2]. https://en.wikipedia.org/wiki/List_of_duty-free_shops - List of duty-free shops
[3]. https://asia-pacific-superyachts.com/2015/02/langkawi-superyachts-duty-free-port/ - LANGKAWI, SUPERYACHTS’ DUTY-FREE PORT
[4]. https://en.wikipedia.org/wiki/Fuel_tax - Fuel tax
[5]. https://www.eniday.com/en/technology_en/fuel-revolution-in-maritime-transport/ - Sailing the seas

Pictures and photos

[1]. Ion Storland, Kedah, Malaysia 28 Nov 2019, View over the Lake Toba.
[2]. http://tasbirnc.blogspot.com/2006/04/duty-free-island-of-malaysia-photo.html, A duty free island of Malaysia----PHOTO FEATURE

[3]. https://www.auto.cz/automobilove-kontra-letecke-palivo-v-cem-se-lisi-a-co-kdyz-letecke-palivo-natankujeme-do-auta-108824, Automobilové kontra letecké palivo: V čem se liší a co když letecké palivo natankujeme do auta?
[4]. https://en.wikipedia.org/wiki/Emission_Control_Area#/media/File:Ship_Maneuvering_out_of_Port_S.Louis_du_Rhone,_near_Marseille.jpg, Emission Control Area