Another Blow to the Google and Apple Online Stores in South Africa

Space_Chief

Honorary Master
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Aug 22, 2012
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Great move. At the moment only physical goods delivered via customes here over $1,000 attract GST and local retailers are affected and want a blanket GST here too.

Well here it's over R250. So you score.

How is this tax 'bad' for the SA economy? Please explain that to me.

Because either these stores will pull out, if they have presence here, or pull their presence. If they do add the tax, the price of the goods will be more prohibitive, and people will have less money to spend on other things. It will also affect your choices as a free individual, which may not be directly bad for the economy but is a good reason to rethink why one is remaining in the country.

It is only bad for Apple, Google who now have to do business on the same level playing field. They do not want to pay income tax in SA(or Aus for that matter on their local business though the govt here is on to them) plus they do not want GST.

If they're not present in the country, they don't have to pay income tax or whatever the term is. They sell because internet, mail order, courier companies and postal services make that possible. The sale has occurred in the foreign country, and often nothing is even brought back, such as server space rental, no importation of anything occurs. Not sure why the company should pay tax because all their costs remain in their country and SA does not incur any costs. The courier and postal fees get paid, and SAPO gets compensated if the volume of mail coming into SA is greater than that going out.

So the local retailers are the ones that are sufferring because short sighted people like most here want to buy things online overseas at the lowest price knowing that they are dealing with companies that do not benefit the local country at all

Not sure why it's the consumer's fault or the fault of the person who buys ONLINE what he cannot get in his country because I don't know maybe he comes from a different culture (cultural diversity) or enjoys or requires different things than the local store provides. Usually people don't buy stuff because it's cheaper, but because it's not available locally, at all, at any price.

If they are only taking money out of SA (bad to exchange rate as it is) and do not put a cent back, then how is this tax bad for SA economy.

Brilliant work by SA govt in taking leadership
on these bully monopoly companies.

Well >90% of manufactured goods are made in China, Korea, Mexico, Pakistan etc. All of that is net outflow of cash. To prevent that home grown businesses have to start up to create exports too. But SA is so regulated and costs so high here that it's becoming less and less feasible. More money for govt, just means more money for govt and quite frankly the govt does not have a good track record with that money they are taking from us.
 
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