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Government’s Concern over Pricing Indices
The government of Australia is one of the governments in the world that tends to regulate overseas companies to investors than it does to local investors. In theory and practice, the margin of ta and duty imposed on these investors translates to an increase in the amount needed to run a business in Australia. However, the concern the government has in regards to the businesses is majorly targeting technology companies and their pricing tendencies. The concern by government over the prices of software downloads intends to investigate why Australians are charged more than other nationals in various other nations. Inspite of the reason pushing the government to this point, other issues have a hand in this. These issues include the nature of the business, the developmental margin of Australia in terms of supporting local and international companies, and protecting the citizens of Australia from corporate exploitation.
The nature of the business of downloading software from the internet is believed by the Australian government to incur no cost for companies in terms of operating. In this case, the index of pricing cannot be connected to the model of operation. Therefore, the government of Australia is investigating the issue of over pricing because it does not believe any of its regulatory policies has had anything to do with the over pricing of software in Australia. On the other hand, the margin of Australia’s development index has slowed for the last half a decade and this has not augured well with the government. As much as the Australian government would tax everything physical or services offered by companies in her soil, it does not have any tax benefits that originate from this kind of business. Lastly, the fact that Australian government does not benefit from online trade of software, it is concerned that citizens are being exploited while other parts of the world are paying less for the same products. In this case, the government is worried that its citizens are helping overseas companies to develop their operational nations while crippling their shopping viability for locally available products and services (Solomons, 1986). Read more...