US worry about Border Adjustment Tax

 

 

 

USA: 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.