Actually, most dutiable items (alcohol, tobacco, perfume) are less than the VAT element off the high street price. But the range which can be sold to EU pax as well as non-EU pax can't be a lot cheaper than that price, because it's a tax-paid duty-paid sale to an EU pax and BAA have to pay the tax and duty out of what the EU pax pays them.

The only slightly galling thing if you're a non-EU pax is that you know that the margin is much bigger if you buy such an item, because BAA will pocket the difference. But you can get your own back by buying the stuff that is only sold to non-EU pax - you know that the profit margin on what you're buying is less than the duty and tax which BAA would have to pay over if you were an EU pax.

BAA can tell its other tenants (Dixons, Hermes and the like, to take two extremes) that they can't inflate their prices beyond high street levels. But how could BAA insist that there be more of a discount than the VAT element on, say, a pack of batteries, which are not dutiable?

And I don't think that GBP 12.50 per bottle of Lanson Black Label, or GBP 15.00 per bottle of Veuve Clicquot - tax-paid and duty-paid, so buy as much as you like - can be described as anything other than a very good buy.

[This message has been edited by Globaliser (edited 01-28-2003).]