10 Duty Free Island

Duty free islands are islands where certain goods are exempted from import or sales taxes, making them cheaper than in other places. Some of the reasons why islands are designated as duty free are to attract tourists, boost the local economy, and promote regional development³.

According to various sources²⁴⁵, some of the famous duty free islands in the world are:

- Langkawi, Malaysia: This island is known for its natural beauty, beaches, and wildlife. It offers a wide range of duty free products such as chocolates, liquor, perfumes, cosmetics, electronics, and more.

- Tioman, Malaysia: This island is a popular diving destination with coral reefs and marine life. It also has duty free shops that sell items such as cigarettes, liquor, chocolates, and souvenirs.

- Labuan, Malaysia: This island is a federal territory and an offshore financial center. It has duty free shops that sell goods such as liquor, chocolates, watches, jewelry, and electronics.

- Pangkor, Malaysia: This island is a newly designated duty free island since 2020. It is a fishing village with beaches and historical attractions. It has duty free shops that sell products such as liquor, chocolates, clothes, and handicrafts.

- Jeju, South Korea: This island is a UNESCO World Heritage Site with volcanic landscapes and cultural heritage. It has duty free shops that sell items such as cosmetics, fashion, liquor, electronics, and more.

- Hainan, China: This island is a tropical resort with beaches and golf courses. It has duty free shops that sell goods such as cosmetics, jewelry, watches, liquor, and more.

- Grand Cayman, Cayman Islands: This island is a tax haven and a cruise ship port. It has duty free shops that sell products such as jewelry, watches, liquor, cigars, and more.

- St. Thomas, US Virgin Islands: This island is a US territory and a cruise ship port. It has duty free shops that sell items such as jewelry, watches, liquor, electronics, and more.

- Aruba, Caribbean: This island is a Dutch territory and a tourist destination. It has duty free shops that sell goods such as jewelry, watches, liquor, perfumes, and more.

- Andorra, Europe: This is a landlocked country between France and Spain. It is a ski resort and a shopping paradise. It has duty free shops that sell products such as liquor, tobacco, electronics, fashion, and more.

Source: Conversation with Bing, 29/04/2023

(1) Duty-Free Islands Will Still Be Taxed Under SST in Malaysia. https://www.3ecpa.com.my/taxation-and-gst/duty-free-islands-will-still-be-taxed-under-sst-in-malaysia/.

(2) Malaysia Duty Free Spots: 7 Places To Get Goods For Cheap - Shopee. https://shopee.com.my/blog/malaysia-duty-free-locations/.

(3) Islands of Malaysia | Wonderful Malaysia. https://www.wonderfulmalaysia.com/islands-malaysia.htm.

(4) Budget 2021: Duty-Free No Longer Duty-Free? | TRP. https://www.therakyatpost.com/news/malaysia/2020/11/17/budget-2021-duty-free-no-longer-duty-free/.

(5) Duty Free Island - customs.gov.my. http://www.customs.gov.my/en/pg/Pages/pg_fti.aspx.