Australia Planning to Place 10% Tax on All Imports, Including Gaming Products
Australia is ready to impose 10% tax on all items purchased from vendors abroad, meaning gamers will also have to pay extra if they wish to purchase items from retailers outside the country.
State and Commonwealth treasurers agreed to imposing this tax, which will cut the $1000 threshold under the new agreement. In simpler words, every import will now be taxed, rather than just those above $1000.
According to federal treasurer Joe Hockey, the GST will apply from July 1,2017. Hockey added:
This will deliver competitive neutrality for Australian businesses, and ensure fair and equal treatment of goods and services. If goods and services would have the GST applied in Australia, then the same should apply for goods [bought and imported] from overseas.
Forgive me, but I fail to see the fairness here. It will benefit businesses in Australia as users will be less prone to import goods, but when it comes to being fair with consumers, this policy seem far from the idea.
The strange part is that authorities wanted to give competitive fairness to businesses in Australia. When it comes to gaming products, software etc, majority of them aren’t being made in Australia so if you look at it, there is no competition at all.
What they are doing is making sure products imported from overseas cost almost as much as they would if bought from within the country.; and we know gaming products are already painfully expensive in AUS.