TAX HARMONIZATION THREATENS DIRECT MARKETING BUSINESS
By Adnews Staff
Canadians employed by catalogues and other direct marketing sectors could face job losses if the Federal government and Atlantic provinces implement current tax harmonization plans, according to the Canadian Direct Marketing Association. Under the plan, any national or international direct marketer who wants to sell in Atlantic Canada will have to provide separate pricing for customers in that region. "Many cataloguers and other direct merchants will simply be unable to justify the cost of printing a separate catalogue or mail-order offer for the Atlantic market," CDMA president and CEO John Gustavson says in a release. "Companies will also have to maintain separate pricing, accounting and fulfillment systems. This could seriously damage their competitiveness." Implementation of tax-in pricing for all direct marketers should be delayed until a single national tax rate is agreed on, Gustavson says. The CDMA has also raised a number of other concerns. Items such as books and magazines that are currently PST-exempt would become taxable. There would be new barriers to inter-provincial and international trade. The tax harmonization would create confusion for consumers if national direct marketers are required to communicate two prices for the same item, and prices in Atlantic Canada will appear to be higher.