[LINK] GST on internet sales

[Michael]

I don't follow the logic on this one.
Collecting GST on inbound individual parcels is costly. Presumably many
dollars per item, if the $1000 threshold is reasonable.
The retailers are asking the government to spend this collection money to
tax the customers, resulting in consumers/tax-payers being worse off.
Retailers have little evidence to show that GST collection will impact O/S
purchases. One would think that international shipping would negate any
savings from GST, but apparently retailers are unable to compete even with
that advantage.
Is the government here to serve the people or vested business interests?
Regards,
Michael Skeggs



On 27 November 2013 13:06, Marghanita da Cruz <marghanita at ramin.com.au>wrote:

> > Retail groups say lowering the threshold will help Australian business
> to compete with overseas shopping websites on price, and net the Government
> an additional $1 billion in GST revenue each year.
> >
> > However, doubts remain about whether the cost of collecting the tax will
> exceed the amount of revenue raised.
> >
> > At today's meeting, Treasury officials presented a range of options for
> lowering the threshold.
> >
> > Queensland Treasurer Tim Nicholls says the states will examine the
> proposals in more detail.
> >
> > "It does show in the first year or two that the costs of collection are
> higher than the revenue generated, but then the trend gets much more
> positive the longer you go," he said.
> >
> > "Online retail sales are growing at 15 per cent per annum. It is a
> growing and significant distribution channel for sales at the moment in
> terms of the GST system."
> >
> > He says there is no clear agreement among states about a new level for
> the GST threshold.
>
> http://www.abc.net.au/news/2013-11-27/treasurers-pushing-for-gst-changes-at-meeting-with-joe-hockey/5119218
> --
> Marghanita da Cruz
> Ramin Communications Pty Ltd
> http://ramin.com.au/
> Phone:(+61)0414-869202
>
>
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