Stop the Harvey Norman GST tax extortion

Harvey Norman and a number of other retailers are attempting to lobby the Australian government to place a GST upon online transactions. We encourage you to boycott Harvey Norman stores in Australia and New Zealand. Taxation is not the answer and we will explain why in this blog.

Monday, January 3, 2011

The proportion of sales which are online

It is interesting to understand exactly why the retailers are so concerned about declining sales. They are not competitive because they are over-staffed. The reality is 'bloated large companies' cannot compete with small companies where professionals work long hours, more effectively, and are able to grab all the business from these retailers.
Some 80% of all online sales in Australia are made with AUSTRALIAN OUTLETS (ie charging GST).
The motive of the retailers appears to be that they will be forced like Qantas to adopt a low-cost operating model. The problem is that they have been very slow to do that. They know they cannot do that easily and retail profit margins. How can they justify their huge showrooms? They need to really examine their business model. The solution lies in differentiating between store sales and online sales. They don't want to do that because it will entail thinner margins. The reality is that those foreign companies are not even their real threat. I guess they might argue that those stores will be a threat if they have to take over an online business, only to realise that the rules have changed.
If that is their concern, then let them complain about arbitrary government (statutory) law, which perverts justice, rather than protecting it.

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