Canadian Retailers Have Been Calling For A Change Of Policy.
According to recent reports from foreign media, due to the introduction of a new regulation, the exemption limit for us consumers to buy foreign products is 40 times that of neighboring Canada.
Last week, Obama signed an agreement that greatly increased the tax-free quota for foreign imports.
The new $800 limit is four times the previous limit, which is several times higher than Canada's 20 Canadian dollar allowance.
This contrast is a great pressure on the Canadian government.
From the US government and industry.
Competitive pressure
This prompted Canadian Prime Minister Justin Trudeau to negotiate with Washington to narrow the gap.
A conglomerate group even convened Canadian consumers to petition online, hoping that people would sign the support to cancel unfair taxation.
"This gap is in our integration.
Economics
"China can't last forever," said Maryscott Greenwood of the Canadian Business Council.
"Canadians think this is basically a question of fairness. Why can the same foreign goods be tax-free, and Canadians pay taxes?"
Internet retailers say Canada's tax exemption regulations are stricter than most countries, and the $20 tax allowance has not been adjusted since 1985.
Increasing the tax allowance can stimulate the development of postal business, save millions of management costs for the Canadian post office, and reduce the cost of cross-border shopping.
Here is a cost analysis case: a Canadian consumer in Ontario Province recently bought $208 worth of clothes from a retailer in New York, paid 20 dollars for freight, and then paid a surcharge of 62 dollars (customs fees, federal and provincial taxes).
Canada's federal and provincial governments will lose a lot of tax revenue, and will also affect the enthusiasm of domestic enterprises to hire IT employees and invest in physical stores.
Greenwood recommends that if the government is unable to determine the impact of this initiative on the economy, it can gradually increase the amount of tax within a certain period.
However, she added, "I do not think that reducing the cost of cross-border shopping by Canadian consumers will hinder economic development."
Canadian retailers have been calling for change.
policy
The warning is invariable at a cost.
The Canadian retail Council has pointed out that raising the tax allowance will have several potential negative effects. It is very gratifying. Last year, the state did not change the relevant policy: "it will cause a large increase in cross border orders, which will have a significant negative impact on Canadian retailers and their employees".
"Even if it looks like a small change, it will have a big impact."
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