CANADA. The Canadian government has rejected calls for further increases in its duty free allowances. Finance Minister Jim Flaherty dismissed a petition from New York Congressman Bill Owens to extend recent allowance increases to travellers spending 24 hours or less in the US.
In June the government increased allowances for returning Canadians to C$200 for trips of between 24 and 48 hours, and C$800 for longer trips. But Flaherty said that increasing the allowance for same-day visitors would disadvantage domestic retailers in border communities.
The news comes as the recent increases are beginning to take effect at Canadian border stores. Figures released by the Canada Border Services Agency Duty Free Shops Program reveal that border sales grew by +9% in June, reaching C$13.8 million. That growth far outpaces the +4.45% sales increase achieved in the first half of the year.
The effect was most pronounced in the Atlantic/Quebec region, where border retailers recorded a +14.7% increase in sales compared with June last year, to C$3.1 million. Sales in the Prairie region grew by around +10%, to C$4.4 million. The Pacific region reported growth of +7.85% to C$2.2 million. And operators in Ontario grew sales by +7% to C$7.5 million.
Airport sales maintained their strong evolution in June, growing by +10% to C$22 million.
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