High profits not high taxes driving shoppers online

by Richard Denniss

According to Australia’s big retailers the Australian tax system is making them uncompetitive against overseas online stores. Poor old Gerry Harvey says he will have to set up an online shop in China so that he too can ensure that Australians importing things worth less than $1,000 via the internet can avoid paying GST. But is the tax system really the main reason for high prices in Australia, or has it got more to do with high profit margins?

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