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Parliamentary retail inquiry should consider GST food exemption impact on small business.



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Media Release

Joel Fitzgibbon MP

Federal Member for Hunter

 

2 June 1999

 

Parliamentary Retail Inquiry Should Consider

GST Food Exemption Impact on Small Business

 

The Joint Parliamentary Committee on the Retail Sector will be aske d to consider the relative impact of the Howard Government’s amended tax package on large and small food retailers.

 

Labor’s small business spokesman Joel Fitzgibbon says the food exemption will enhance the already significant advantages large retailers have over smaller players.

 

“Technology like bar-coding systems will make the exercise of differentiating between taxed and untaxed goods less onerous for large retailers and will place small firms at a significant disadvantage.

 

“Smaller retailers are already struggling in the face of the advantages enjoyed by large retailers - advantages which flow from their purchasing power, economies of scale and their ability to spread losses and absorb compliance costs.

 

“These are all matters the Retail Committee needs to take into account when considering the issue of market dominance.

 

“Today I have written to the Committee’s secretariat asking that some research be undertaken to assess the relative impact of the food exemption on large and small retailers”, Mr Fitzgibbon said.

 

Contact: Cassandra Gelade 02) 62774404 or 0407 496 237

 

Joel Fitzgibbon M.P.

Federal Member For Hunter

Shadow Minister for

Small Business and Tourism

 

2 June 1999

 

Ms Andrea Griffiths

Secretary

Joint Parliamentary Inquiry into the Retail Sector

S1 108, Parliament House

CANBERRA ACT 2600

 

Dear Ms Griffiths

 

The adverse impact of the Government's decision to amend it’s ANTS package in order to exempt some foods from the GST will fall disproportionately on small retailers.

 

As the Committee Members are well aware, smaller retailers are already struggling in the face of the advantages enjoyed by large retailers. Advantages which flow from their purchasing power, economies of scale and their ability to spread losses and absorb compliance costs.

 

T hese are all matters the Retail Committee needs to take into account when considering the issue of market dominance.

 

Could you please advise whether the Committee has the resources to undertake some research into the relative impact of the amended tax package on large and small retailers.

 

Yours sincerely

 

Joel Fitzgibbon MP

Member for Hunter

Shadow Minister for Small Business and Tourism

 

 

al  1999-06-03  11:14