3 ms·
In the US, sales tax rates vary by state, county and even city. Some states have no sales tax. It would be impossible to advertise a price for a product when it
by s1mon 6y ago
In the US, sales tax rates vary by state, county and even city. Some states have no sales tax. It would be impossible to advertise a price for a product when it would be so many different numbers depending on where you are. For example, if a big grocery store chain wants to advertise the price of a 6-pack of Coke, do they list 20 different prices or do they eat the difference in taxes and make the end price the same?
- davchana 6y agoNot saying that this will work in US, but India is also like US, federation of states, with federal tax, state tax, city tax all over the spectrum over the length & breadth of country. All advertisements of car, butter, biscuits, house, anything which can be priced over TV/Media advertises its MRP (maximum Retail Price), which is also printed on product itself too. Retailer use stickers on shelf or on product itself to tell what is the actual price, which by law should not be more that its MRP. The taxes along the route, physically & supplier/trader wise affects the price, but it is illegal for anybody retailer to sell anything more that its printed MRP. Yes, same packet of potato chips costs R20 at capital R25 at hill stations (but its MRP shows R25).