The group Stand Up T&T has started a petition calling on Finance Minister Colm Imbert to repeal the seven per cent online tax introduced in the 2016/2017 budget last Friday.
The group started the petition within 24 hours of the budget being read in the Parliament and so far it has gathered over 1,800 signatures.
With the title “Repeal the 7% Online Tax NOW!!!”, the petition labels the move to tax online shoppers as “advantageous.”
“Mr Minister of Finance, that 7% tax on online shopping is punitive and obscene and panders to big business while denying consumers their right to free choice. It is heinous, nefarious, grievous, spurious, egregious and advantageous,” the petition reads.
It adds: “It is offensive to the spirit of a free market economy and an affront to decency. It is government by big stick and policy for hire. We demand fair play and respect for all. We demand the repeal of the 7% Online Tax NOW!!!”
The petition’s supporters had a lot to say about the tax, which kicks in on October 20, as well.
Alicia Hackshaw wrote: “You cannot force the citizenry to purchase items where you and your buddies want us to. This is not a communist dictatorship. Quit acting like it. You are killing small businesses that rely on such couriers to bring in their goods as well.
“Why not fix the systemic problem of excessive prices and poor customer service first, especially if you wish to attract more tourists into the country.”
Another supporter, Aneil Jattansingh, said local businessmen are too “greedy.”
“Why can’t businesses in T&T try to be competitive? Why does an SUV that retails for US$20K cost TT$400K? They pay rent, staff and taxes there too. Local businessmen are too greedy.”
Supporter Kaleem Mohammed called on the Government to remove some of the taxes on citizens, writing: “Why tax everything? Enough is enough. The Government trying to milk a dry cow. They done sapping all the milk we have ... moo damn it!”
While the petition gathered support yesterday, businessman Hollis George said those with online shipping companies should not oppose the tax.
George, who owns and manages InStyle Logistics and Shopping Services and Safari Couriers, two online shopping companies, told the T&T Guardian the tax should be applied for a trial basis.
“Let us say you are living in America, you have to pay the government tax if you are shopping online there. There is no if or but,” George said.
“I think it should be monitored closely and the Government should be prepared to amend it after a year, so they can know how effective it is and if it is serving the purpose of encouraging customers to shop local.”
He said he is not rushing to raise his shipping rates either.
“This tax is new to us now and it's up to the Skybox companies and their customers to work out that tax. Personally, I am not going to just change my rates off the bat... I’ would be looking at what Customs is doing and what the difference is on my cost after October 20,” he added.
He said he had seen the online petition himself but did not bother to read or support it.
“The problem is no one who goes into a business is willing to absorb a higher cost, most of the times the excess is sent down to the customer,” George said.
“Online shopping is a luxury. It is something you stay in-house and order and it is damaging our local markets. I have customers that are importing light bulbs for their homes when it can be bought locally. It is a bit excessive and there needs to be a balance,” he added.
George said there was also sea freight service called Sea Box which got your item here within one week and could be used as an alternative to air freight.
Imbert: Every little bit counts
Finance Minister Colm Imbert said yesterday that Government could do a lot with the tax earned from online shoppers, including running a hospital.
He made the comment as he responded to questions on the new seven per cent online shopping tax at the T&T Chamber of Industry Commerce’s post-Budget forum yesterday.
Asked to comment on public criticism that Government was targetting the small man instead of big businesses with the tax, Imbert said: “The banks tell me that the credit card purchases in T&T per annum exceed US$1 billion.”
Pressed on whether he should not go after the retail sector instead of the “small fry” or individuals, Imbert asked reporters what method would be used to do so.
“We are going to be earning US$70 million from that (taxing seven per cent on all purchases). That’s not a small amount at all. Every little bit counts, $70 million could run a hospital.”