Monaco has a customs union with France, and its currency is interchangeable with the French. Excise, stamp, transfer, and estate taxes are an important source of state revenue. Contrary to popular belief, the gambling casino (which is managed as a concession by a private corporation) accounts for only a small portion of government revenue, although it contributes greatly to the economy by attracting tourists. In addition to tourism and the foreign businesses attracted to Monaco by low corporate taxes, shipping and the manufacture of perfumes, pharmaceuticals, processed food, and precision instruments are also important.
The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2012, Columbia University Press. All rights reserved.