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> This will only hurt the people who live in the UK. Those companies will just raise their prices to cover the tax. If amazon could charge an extra 3% without
by isostatic 8y ago
> This will only hurt the people who live in the UK. Those companies will just raise their prices to cover the tax.
If amazon could charge an extra 3% without losing customers to other suppliers, why wouldn't they do that with or without the tax?
Currently if amazon charge £10 and argos charge £10.20, amazon wins, if amazon charge £10.30 (to 'recover' the new tax), argos wins.
- dahdum 8y agoIs Argos exempt from this tax? They certainly exceed the 500m in revenue threshold. If they are, this tax seems to be more like a tariff than not.
- isostatic 8y agoArgos isn't an online market place.
- Eridrus 8y agoA rational company optimizes profits, rather than just revenue, when your costs go up, you may be interested in raising your prices, even if it reduces the number of items you sell, because part of the revenue has to be paid to someone else. You can see this trivially if a business only has a 1% profit margin on an item. It's likely going to fall on some combination of business and consumer that we won't know a priori.