Canadian Retailers Have Been Calling For Policy Changes

According to the recent reports of foreign media, due to the introduction of a new regulation, the tax exemption limit for American consumers to buy foreign products is 40 times that of neighboring Canada.

Last week, Obama signed an agreement that greatly increased the tax exemption limit for foreign imports. The new $800 limit is four times the previous limit and dozens of times higher than Canada's $20 tax exemption.

This contrast has put enormous pressure on the Canadian government. From the US government and industry Competitive pressure And urged Canadian Prime Minister Justin Trudeau to rush to Washington for negotiations, hoping to narrow the gap.

A group of enterprise groups even convened Canadian consumers to make an online petition, hoping that people would sign up to support the abolition of unfair taxes.

"This gap exists in our integration Economics China cannot exist for a long time, "said Maryscott of the Canada US Business Council Greenwood said that the petition appeared. "Canadians believe that this is basically a fair question. Why do Americans have to pay tax on the same foreign goods while Canadians have to pay tax?"

According to online retailers, Canada's tax exemption regulations are stricter than those of most countries, and the $20 tax exemption has not been adjusted since 1985.

Increasing the tax exemption can stimulate the development of the postal service, save millions of management costs for Canada Post Office, and reduce the cost of cross-border shopping for consumers.

Here is a case of cost analysis: a Canadian consumer in Ontario recently bought clothes worth 208 dollars online from a retailer in New York; The freight is another $20, followed by a surcharge of $62 (customs fees, federal and provincial taxes).

Canada's federal and provincial governments will lose a large amount of tax revenue, which will also affect the enthusiasm of domestic enterprises to hire IT staff and invest in physical stores.

Greenwood suggested that if the government could not determine the impact of this measure on the economy, it could gradually increase the tax limit within a certain period of time. However, she added: "I don't think reducing the cross-border shopping costs of Canadian consumers will hinder economic development."

Canadian retailers have been calling for change policy , warning that there will be a price for not changing.

The Canadian Retail Council pointed out that there would be several potential negative effects of increasing the tax exemption, and expressed its satisfaction that the country had not changed the relevant policies last year: "It would cause a large increase in cross-border orders, which would have a significant negative impact on Canadian retailers and their employees".

"Even small changes can have a big impact."