The author Douglas Adams once observed that no language has ever come up with the phrase “As pretty as an airport.” In the same book the late British author also observed the duty-free shops are able to charge lower prices than regular stores, but for some mysterious reasons do not elect to do so. Duty-free shops simply mean that the items the store sells do not require the purchaser to collect taxes in the country where the shop is. Duty-free shops are why it is legal for a person in an airport to buy cigarettes without paying taxes.
This may seem a little strange, but in the United States, it allows people to buy cigarettes without having to pay the relatively high taxes on the product. Although current FAA rules prevent the purchaser from smoking the cigarettes on the plane, it is a way for a local resident to avoid paying the taxes designed to discourage people from smoking.
Airport duty-free shops are legal, and occur, naturally, only in airports of sufficient size. Before the reader starts to rail on duty-free shops, they sell many other goods tax-free. A smoker can avoid paying the often high cigarettes on taxes in other ways if he so chooses. The first and most common way is for the purchaser to buy cigarettes over the Internet. Internet and mail order vendors are not exempt from paying federal taxes, but they can only charge sales taxes to people who order from their state of residence.
Another common strategy, although the legality of these vendors is in question, is to buy the cigarettes from vendors or casinos on Indian reservation land. Many tribes have treaties with the national government that allows them, or so they claim, to sell cigarettes and other tobacco products without paying state and federal taxes. Whether a smoker buys his tax-free cigarettes from a duty-free shop, over the Internet, or from a casino on a reservation, he or she must be old enough to smoke the product legally.
The Federal government allows a consumer to purchase cigarettes’ tax free in the second and third cases. The second case deals more with interstate commerce law and the current lack of regulation on tobacco products sold over the World Wide Web.
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