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Higher online costs

Discussion in 'Off-Topic Forum' started by Notmyrealname, Jul 29, 2020.

  1. Notmyrealname

    Notmyrealname DI Forum Luminary Highly Rated Poster Showcase Reviewer

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  2. Rye83

    Rye83 with pastrami Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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    I wonder if Lazada and Shoppee may be exempt since they are mainly just a middleman for smaller businesses? Perhaps a fair way to tax things like these online retailers would be to only tax the take of the corporations.

    Also, how would things like food delivery services be handled?
     
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    Notmyrealname

    Notmyrealname DI Forum Luminary Highly Rated Poster Showcase Reviewer

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    Like most things, we will probably find out eventually! Will this launch another session of 'panic buying'?
     
  4. Rye83

    Rye83 with pastrami Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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    I'm not sure what they have on offer there that would warrant such behavior. A lot of their stuff still comes out cheaper than you could buy locally even if you throw a 12% price hike on it. I think this may also actually benefit the consumer as it may see companies like Lazada picking up their game to stay competitive and offer something similar to an Amazon Prime membership where a monthly membership could see perks like free shipping on most items. I know I would sign up the same day I found out such a service was available.
     
  5. Happy Camper

    Happy Camper DI Senior Member Showcase Reviewer

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    Wonderful, but I don't think this will be the end as the government looks to make up revenue shortfalls from a closed economy.
     
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    Notmyrealname

    Notmyrealname DI Forum Luminary Highly Rated Poster Showcase Reviewer

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    Increased taxation of goods means people buy less! (Or buy quickly before taxation kicks in and then the 'buying' drops off). Increase taxes on earnings/remittances? So people have less to spend.

    Not an easy decision how to get the money to pay for the covid crisis but keep the economy churning.
     
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  7. Happy Camper

    Happy Camper DI Senior Member Showcase Reviewer

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    Will be interesting to see what they do with property taxes. They will be coming due soon, you can usually begin paying them in December.
     
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  8. Rye83

    Rye83 with pastrami Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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    Amazon in the past few years has been required to pay state tax (where applicable). Did they see a decline in sales? Hard to say but I think the company has continued to grow and see an increase in sales despite the additional tax burden on consumers.

    From Wikipedia:
    This may prove to be the case with Lazada and other similar websites servicing the Philippines. Since the law says that it won't apply to small businesses I can easily see a legal argument for the small business listing products on Lazada being exempt from sales tax. I think the way the law reads right now you won't see an increase in prices on a large number of products on Lazada.

    Of course the Philippines is a completely different economy and culture. Cheap and kuripot rules supreme here, regardless of product quality, customer service or convenience. It may be far more harmful to online sales that it was in the West.
     
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    Notmyrealname

    Notmyrealname DI Forum Luminary Highly Rated Poster Showcase Reviewer

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    I think they probably want people to switch from online purchasing to using local sources as a greater stimulus to the economy. Shopee is far from perfect and I would purchase more locally if the online prices increased too much.
     
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  10. Rye83

    Rye83 with pastrami Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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    I would buy more locally if I didn't have to waste the better part of a day driving around to 20 different shops, struggling to find a parking spot at each location...and maybe not even be allowed in depending on the day of the week due to the pass system, to maybe find what I was looking for. Usually what I'm looking for is "out of stock" or if available it is overpriced Chinese garbage. Until local business owners step up their game I have little interest in supporting them and their sub-par products when I can just go online and get exactly what I am looking for. I don't even see the items that have higher prices as actually being more expensive; my vehicle wear and tear, fuel, time and sanity is worth far more than any price difference I have found online.
     
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