The online tax is a recipe for inequality

The application of this tax is based on the assumption that those who purchase online are competing with local business people.

It is imperative that this assumption be debunked as there are many people who undertake these purchases to acquire items for their personal and family use.

The items purchased are in many cases either not available on the local market or, if available, are provided at exaggerated costs.

The other problems with the local purchases include quality (many pieces of clothing and footwear are seconds).

Jogging shoes for most people whose feet are size 12 or larger are difficult if not impossible to get in local sports stores.

Where prescription glasses can be purchased and delivered for approximately US$150, the equivalent could cost is close to $3,000 in TT and the same or worse for contact lenses.

In the case of supplements and herbal treatments/medical supplies, the local market supplies small quantities that are expensive and not always readily available. The online purchases provide value in terms of volume, consistency (as in always available) and a better price per unit (tablet).

The Government needs to rethink the process through which this tax is to be implemented and to whom. Where there are purchases of single items for personal or family use, these items should be exempt from the seven percent tax.

However, where items are purchased in large amounts for resale, the seven percent purchase tax should be applied as end profits are expected with retail sales.

The implementation of this proposal will ensure that online traders will pay taxes on resale items.

Although this tax was supposedly put in place by the Government to stem the tide of forex depletion, a major concern of many is who really benefits from the implementation of this tax? It is felt that only big business and resale importers will benefit as they can pass on the tax to the consumer. Those who purchase needs and wants for their personal and family use will be affected most by the imposition of this new online tax.

It is widely understood that the country’s foreign exchange needs to be properly managed now and into the future for the benefit of all in TT . However, we cannot punish those who purchase personal and family needs and wants in a similar fashion as those who buy online for resale.

Finally, I urge the Finance Minister to please reconsider how this tax is to be implemented. It is time that the Government in the development of policies and tax regimes begins to listen to the voices of the people and not those of big business alone.

ALBAN C SCOTT Woodbrook, PoS