Retail executives in the USA are planning to meet US Treasury Secretary Steven Mnuchin today to share their views on the possible harmful effects of ‘Border Adjustment Tax’ (BAT) on consumers in the country. The proposed BAT would install a 20 per cent tax on imported (but not exported) goods, including those manufactured overseas for US retailers.
The 11 executives that will be in attendance hail from JCPenney, VF Corporation, Energizer Holdings, AutoZone Inc., Chico’s FAS Inc., Dollar General Corp., IKEA North America Services, PetSmart Inc., Tractor Supply Co., PVH Corp. and Coca-Cola. Representatives from Retail Industry Leaders Association (RILA), including its President Sandy Kennedy, will also attend the meeting.
Also Read – US retailers worry about Border Adjustment Tax
It’s worth mentioning here that since the proposal of applying BAT has been released by President Donald Trump, retailers in the US are uncertain about their business in the country. Japanese fast fashion retailer Uniqlo, last month, threatened to close all stores in the US if faced with the tax. To address the same issue, many retail brands and organizations such as NRF, Target, Best Buy, GAP and their representatives have met the President Trump over the last few months.
Although the President has not included BAT in his latest tax plan – which includes lowering the corporate tax from current 35 per cent to 20 per cent – final call on the BAT is yet to be made, leaving the retail scenario uncertain.
