That's what does happen. People used to go abroad to buy cars in Belgium and France cause it was cheaper. UK car sales dropped, they dropped prices and now that rarely happens anymore. When I'm abroad i take the opportunity to buy things that are cheaper. The thing you have to realise is that they are governments and not businesses, they have to be fair. It's not quite fair if they rip off the people who live far from the border is it? Brussels doesn't stop countries from dropping taxes on fuel/items (apart from VAT), it just has to be FAIR. This of course benefits Luxembourg quite a lot as they can choose to charge very little tax on anything and therefore people drive over the border to buy fuel/****/alcohol.
How unfair would it be if the government decided to raise fuel duty in more populous areas because they know people don't have the time to drive 50km to the cheaper zone?
Because you aren't ripping off people, you're ripping off the other country's finances.Why is it neccessary to rip everyone off equally? if a country wishes to charge its citizens less for fuel, then what exactly is wrong with that?
& undertaker in response to your edit why "give it 5 years," when luxembourg has historically always had low indirect taxation and have been in the EC/EU for a long time? :S Paranoia...






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