ARA supports calls for company tax cut at Tax Forum
The Australian Retailers Association (ARA) has openly supported sentiments by the Greens and Council of Small Business of Australia (COSBOA) for company tax cuts to form part of the discussion at the Tax Summit on 4 and 5 October.
ARA Executive Director Russell Zimmerman said ARA’s own submission to the Tax Forum called for company tax cuts as the retail industry becomes increasingly trade exposed and globally vulnerable to competition from lower taxed nations.
“The ARA is supportive of company tax cuts for all retailers who are increasingly competing in an international marketplace and find themselves burdened with much higher tax rates than their overseas counterparts.
“We are heartened to see discussions taking place in the lead up to the Tax Forum which takes into account the pressure on small businesses and the importance of reducing the tax burden so they are able to continue their vital contribution to the economy.
Zimmerman said the government’s own discussion paper for the Tax Forum acknowledges the proportion of tax revenue being raised from corporate taxes is higher on average than in other OECD countries. In its submission, ARA has recommended reducing the company tax rate to proportions relative to these other countries.
“If the pressure of high tax rates were alleviated, retailers would be able to get on with the job of innovating towards global competitiveness with initiatives such as growing their online presence, reaching out to changing consumer markets and ensuring people stay employed in a thriving sector,” Zimmerman said.
Helen Hull is the editor of First 5000, the leading network for mid-sized businesses in Australia.
