GST to decide future of eBay
RETAIL king Gerry Harvey has warned the Australian economy will “go up in smoke” if companies like eBay and Amazon don’t pay their fair share of GST on overseas imports.
The Australian electronics and homewares founder has issued a major spray to the internet shopping giants saying claims their businesses would severely suffer from an additional 10 per cent levy on purchases from foreign businesses were “bull----”.
He said unless the Government stood firm on a plan to introduce GST on all purchases from foreign retailers under $ 1000 from July 1, the local economy would falter.
“This is so much bullsh* t. What they are going out and saying is disgusting,” the 77year- old co- founder of Harvey Norman said of eBay and Amazon yesterday.
His comments come as News Corp Australia has learned eBay could be forced to shut down or significantly reduce its Australian platform if the Government pushes ahead with changes to GST laws for importers.
The online shopping giant, used by millions of Australians, is understood to be considering “all options” ahead of the tax law changes which they say unfairly target its business model.
Prime Minister Malcolm Turnbull, who made his own millions by starting online heavyweight Ozemail, will next week meet with Amazon and a large group of logistics and freight companies in Can- berra to changes.
It comes as Australians selling and exporting the majority of their products through eBay and other online platforms claim their livelihoods may be crippled by other foreign countries who could implement retaliatory additional taxes on imports.
Foreign sellers may decide to pull out of the Australian market completely, or eBay. com. au may be forced to exclude them from the marketplace, significantly paring down their business.
In a confidential submission to Treasury by eBay and obtained by News Corp Australia, the online shopping giant gave a dire warning of its future business in Australia if the measures proceed.
“The bill potentially unfairly targets eBay and comparable third party marketplace platforms because it has a presence in Australia,” the submission from eBay states.
“Other dot. com sellers who do not have a presence in Australia will largely ignore the legislation because there is no practical way to enforce it.”
Nearly 30,000 Australian businesses use the ebay. com. au platform and almost 80 per cent of Australian eBay sellers are exporters. discuss the GST