DENMARK PLANS TO END SALES TAX ON SOME ITEMS
The Danish government said it planned
tax changes to discourage people making shopping trips to West
Germany and other countries where consumer durables are
cheaper.
    Tax Minister Isi Foighel told journalists the government
will present a bill abolishing sales tax - generally 10 to 20
pct - on radios, record players, loudspeakers, video tapes,
vacuum cleaners, microwave ovens and small household items.
    The annual loss in revenue of 275 mln Danish crowns will be
made up by higher duties on four-wheel drive vehicles and small
pick-up vans, which will be taxed in future as commercial
vehicles under two tonnes.
    Foighel also announced small reductions in the concessions
for duty-free imports to compensate for a strengthening of the
Danish crown.
    He said maximum concessions would apply in future only to
travellers out of the country for more than 24 hours. Those
returning within that period will have to prove to customs that
they have been on more than a shopping trip.
    The tax move follows an official report showing that total
border imports, about three billion crowns in 1985, rose by
some 600 mln crowns in 1986, a trend which has alarmed Danish
businesses, particularly in Jutland areas bordering Germany.
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