Without a doubt I believe that the seven per cent tax for online shopping will come into effect within days, as stated in the 2016/17 budget presentation. The Finance Minister has indicated that over one billion dollars in foreign exchange leaves the country yearly through online shopping. This measure, I believe, is to curb this. While this is all well and good, attention must be given to why people choose online shopping.
I would like to say that people do not do online shopping for fun but, rather, they are just being money-smart. Let me share some reasons why online shopping has caught on in T&T. First of all, in many instances our local businesses have very heavy mark-up on their products. Most recent example: one week ago I purchased an android box for my television.
The entire transaction cost me TT$350. Guess what a local dealer is selling the exact thing for—TT$1,200. And that is a deal! Can that be fair to anyone? Yes, you must make a profit, but this is ridiculous.
Secondly, quality. I have experienced and heard many people testify that in many instances certain products that they purchased online were way above the standard that is found here in T&T. You cannot blame someone for wanting better quality.
Thirdly, variety. The market you have to choose from out there is enormous. Anything I cannot get in T&T I am guaranteed that I will find it online.
Finally, convenience. Everything can be done at home and also be delivered after purchase. When you put these four benefits/advantages together who would not choose online shopping?
The business community needs to go back to the drawing board and deal with prices, quality, variety and convenience if they are going to compete with online shopping.
Do you know that even with the seven per cent tax it is still cheaper to purchase online?
Arnold Gopeesingh
San Juan