SYDNEY, December 4, 2010 (AFP) - Australia's largest department store chain Myer will open an online business based in China in a bid to lure Australian customers with the promise of zero taxes on their goods, reports said Saturday.
Myer, which floated on the Australian stock exchange 12 months ago, said it would start up the Chinese site and ship goods from a warehouse in southern Shenzhen in a bid to dodge Australia's 10 percent goods and services tax (GST).
"We will take jobs offshore and we will ship product out of China through our Internet site," Myer chief Bernie Brookes said, according to Fairfax newspapers. "It's a bloody shame."
Brookes said the push aimed to give Myer a more "level playing field" with online shopping outlets, which are exempt from GST on purchases worth less than 1,000 dollars. Major retailers have been lobbying Canberra to change the law.
Australian shops are struggling to compete as the local dollar hovers near parity with the greenback, giving customers better value for money at offshore-based Internet sites.
Canberra said it was "considering the concerns of retailers... particularly in light of the high Australian dollar," which closed Friday at 97.72 US cents, two months after breaching parity with the US dollar for the first time in its 27-year free-floating history.
Myer, which floated on the Australian stock exchange 12 months ago, said it would start up the Chinese site and ship goods from a warehouse in southern Shenzhen in a bid to dodge Australia's 10 percent goods and services tax (GST).
"We will take jobs offshore and we will ship product out of China through our Internet site," Myer chief Bernie Brookes said, according to Fairfax newspapers. "It's a bloody shame."
Brookes said the push aimed to give Myer a more "level playing field" with online shopping outlets, which are exempt from GST on purchases worth less than 1,000 dollars. Major retailers have been lobbying Canberra to change the law.
Australian shops are struggling to compete as the local dollar hovers near parity with the greenback, giving customers better value for money at offshore-based Internet sites.
Canberra said it was "considering the concerns of retailers... particularly in light of the high Australian dollar," which closed Friday at 97.72 US cents, two months after breaching parity with the US dollar for the first time in its 27-year free-floating history.