Contact

Duty-free, profit-heavy? How prices at SA airports duty-free stack up

Back to top

Duty-free, profit-heavy? How prices at SA airports duty-free stack up

Petr Erasmus, Director in the Tax & Exchange Control practice was featured in Financial Mail discussing Duty-free, profit-heavy? How prices at SA airports duty-free stack up

20 Jun 2024 1 min read Article

Airport duty-free shopping may seem like an opportunity for exclusive discounts, but most products do not offer significant savings. In fact, many items are more expensive than in traditional stores.

Petr explains that products such as hard liquor, cigarettes, and perfumes attract significant sin and luxury taxes, as well as duties, which allow for more flexibility in discounting.

Petr adds that although many travellers may feel disappointed by the lack of deals on many items in duty-free stores, there is nothing improper about the mark-ups. Like any retail space, airport duty-free operates on the premise of a willing buyer and a willing seller. The stores have the right to mark up prices on duty-free products to cover high rental costs or generate a profit.

The information and material published on this website is provided for general purposes only and does not constitute legal advice. We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information. Please consult one of our lawyers on any specific legal problem or matter. We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained in these pages. Please refer to our full terms and conditions. Copyright © 2024 Cliffe Dekker Hofmeyr. All rights reserved. For permission to reproduce an article or publication, please contact us cliffedekkerhofmeyr@cdhlegal.com.

You might also be interested in

20 Mar 2024

by Andrew van Niekerk, Tsele Moloi and Khutso Mongadi

Eskom clarifies the issue of “curtailment” for IPPs

In January 2024 Eskom published the much-anticipated addendum to the Generation Connection Capacity Assessment (GCCA) (Addendum). The Addendum was first mooted in the GCCA 2025 published in October 2023 (GCCA 2025). It is intended to provide clarity in respect of Eskom’s proposal in the GCCA 2025 to use “ curtailment ” to address the challenges of limited available grid capacity faced by independent power producer (IPP) projects in the Eastern, Western and Northern Cape (the provinces). 

Corporate & Commercial Law

3 min read

9 Nov 2023

by Alex Kanyi, Brian Muchiri, Kevin Kipchirchir and Billy Oloo

Salient features of the Kenya-Singapore bilateral investment treaty

The Kenya-Singapore Bilateral Investment Treaty (BIT” came into force on 20 August 2023, five years after it was signed in 2018.

Tax & Exchange Control

9 min read

1 Feb 2024

by Gerhard Badenhorst

VAT agency and principals

The terms “ agent ” and “ agency ” are not defined in the Value Added Tax Act 89 of 1991 (VAT Act). The South African Revenue Service (SARS) has indicated in Interpretation Note 42 (IN 42) that it accepts that the common law relationship between the principal and the agent prescribes the value-added tax (VAT) consequences of this legal relationship. The general VAT rule is that where a person, acting as agent, supplies goods or services on behalf of a principal to a third party, the supply is deemed to be made by the principal and not the agent (section 54(1) of the VAT Act). Conversely, where a third-party supplier makes a supply to an agent acting on behalf of a principal, that supply is deemed to be made to the principal (section 54(2) of the VAT Act). In these instances, the principal and not the agent must account for VAT on the supplies.

Tax & Exchange Control

6 min read

14 May 2024

by Ceciley Oates, Kirsty de Sousa and Raaheel Bux

Title deeds are meant to be kept safe, “not for inspiring young pilots”

When you receive your original title deed or notarial deed, especially after making a cash payment without financing through a mortgage bond, you often hear the advice, “ Please take care of these documents and keep them safe .” Replacing them can be costly and may cause delays when selling a property or leasehold rights, or securing financing.

6 min read

31 Aug 2023

by Mashudu Mphafudi, Kuda Chimedza and Michael Bailey

Rooftop solar: Energy bounce back loan guarantee scheme

Professor Anton Eberhard estimates that as of June 2023, households and businesses have installed 4,412 MWs of rooftop solar. Not only is this double the capacity of Eskom under its four previous Renewable Independent Power Producer Programme (REIPPP) but nearly a 350% increase of the installed capacity by households and businesses since March 2022. Although households and businesses who have the means to install rooftop solar will continue to do so, there remains a funding gap that still requires government intervention.

Finance & Banking Law

5 min read

21 May 2024

by Taryn York and Mapaseka Nketu

The "nomad" visa has officially been implemented in South Africa

Following the withdrawal of the Proposed Second Amendment of the Immigration Regulations, 2014 (Regulations) during April 2024, the Regulations were republished by the Minister of Home Affairs on 20 May 2024, and came into effect on the same date.

2 min read

This website uses cookies to enhance the browsing experience. For more information, please see our Cookie Policy.

Accept Decline