[LINK] Kogan on Online Retail....

[Marghanita da Cruz]

Jim,\

For my part,

I was simply pointing out that GST is included in prices in
Australia and added on in the US and so it may impact on the
prices displayed on websites. The different labelling was
discussed at length when the GST was introduced here, in
2000 and ofcourse, Air tickets are often advertised
excluding taxes.

My original point was about wider consumer choice, when
I mentioned I bought my Linux out of the box Netbook
from Kogan (online only). But then so is Dell.

Picking up on Jan's comments about extended warranties, I
did once buy a video camera from Harvey Norman and was
offered an extended warranty - the sales man tried to
explain that this would cover me in the event of a software
failure!

Marghanita

Birch, Jim wrote:
> There seems to me to be a general conflation of two issues in this
> discussion (here and elsewhere) between the performance of local
> retailers and the economic case for GST on international purchases.  
> 
> I don't have much to add to the discussion of the performance of local
> retailers.
>  
> As regards GST: it is a consumption tax applied to sales to the final
> consumer.  I can't see a good reason for Australia to forgo tax revenues
> on consumption that is purchased from overseas, particularly as this is
> likely to increase over time.  I can't see any policy problem with this.
> Can anyone?
> 
> There is, however, a practical problem in getting a collection process
> that functions smoothly and effectively.  I'd guess that can be sorted
> if the financial transfer is used as a tax point but I wouldn't know.  I
> don't think 10% GST will stop people from purchasing goods at 50% of the
> local price overseas, although it will swing marginal cases a bit.  I
> bet Harvey Norman wants in addition to GST on foreign purchases, the
> most obtuse and difficult tax collection scheme that can possibly be
> constructed :)   
> 
> (There is a good economic reason for slanting taxation towards
> consumption rather than productive investment.  OTOH flat rate taxes are
> regressive since they are impact the poor to a greater relative degree,
> but I think this can and should be mitigated elsewhere.)
> 
> Interwoven with the above there's also a third irrational "monkey brain"
> issue of taxation in general: no one wants to pay tax.  However, we all
> want to live in the amenity of high tax countries and no one wants to
> move to places where tax rates are genuinely low, eg, Somalia. Enough
> said on that one. :)
> 
> - Jim
> 
> 
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-- 
Marghanita da Cruz
http://ramin.com.au
Tel: 0414-869202