Retail industry in the US is up against the proposed ‘Border Adjustment Tax’ (BAT) which they claim will result in spiked prices for consumers. About 97 per cent of apparels sold in the US are imported as the country doesn’t have the necessary factories or the trained workforce to make up for imports.
BAT would cause companies to pay 20 per cent more for imports than for domestic goods, while exporters would pay no income tax on revenue from goods they sell to foreign customers. To express the concern over BAT, representatives from industry trade groups such as the National Retail Federation (NRF) and Retail Industry Leaders Association, along with eight retail executives including Target CEO Brian Cornell, Best Buy CEO Hubert Joly and Gap Inc. CEO Art Peck met President Donald Trump.
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NRF President and CEO Matthew Shay said, “We should go back to the drawing board, roll up our sleeves and find another way that doesn’t propose a new law that’s going to pick winners and losers among industries and is going to add a new sales tax on the price of everything consumers buy.”
It’s worth recalling that previously a group of more than 120 retailers and trade associations launched a coalition (Americans for Affordable Products) in the beginning of February to oppose this BAT proposal. “We oppose any border adjustment tax (BAT) because it will increase the cost of clothing, food, medicine, gas, and other essential items that Americans rely on,” the coalition commented.
