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India launches new single nationwide tax

A man displays a bill at a restaurant with the new Goods and Services Tax (GST) added to it, in Mumbai, India, Friday, July 01, 2017. Shops and businesses "There will be some hurdles initially. But we will be able to remove them in 1-2 months," Subramanian told reporters. The government published lists last month showing almost every item for sale in India, from shampoo to tea to automobiles, should be taxed within four broad categories -- at rates of 5 percent, 12 percent, 18 percent or 28 percent. It had already ordered all businesses in January to adopt or upgrade cash registers and computer systems so they are able to file tax returns that comply with the new tax regime. Most of India's 29 states have passed local laws to implement the new tax regime, but some have pleaded for more time. The government dismissed that idea, but at least one industry grouping -- the Associated Chambers of Commerce and Industry of India -- urged a delay, saying the government's own computer networks are not yet ready for the change. First proposed in 2003, the idea was bogged down for years in bipartisan debate, with various governments trying to push it forward while opposition politicians dragged it back. Before Modi and his Bharatya Janata Party came to power three years ago, they were staunchly against the move. Some opposition parties asked the government to delay implementation of the new system until October as Indian businesses were still recovering from the government's snap decision to remove 86 percent of its currency from circulation overnight on Nov.

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That’s one more piece of evidence indicating that, while some traditional retailers are indeed struggling amid rising online competition, alarm about a “retail apocalypse” is overblown, industry analyst Paula Rosenblum said. “The truth is that stores are generally more profitable than e-commerce sites,” Rosenblum, managing partner at Retail Systems Research and a former retail technology executive, said by email. “While L.L. Bean has been in the direct-to-consumer business for years, and knows how to manage it, the lure of lower apparel return rates and customer engagement in a store is pushing them to open stores.” What’s more, said John Rabenhorst, a principal in the retail practice of consulting firm A.T. Kearney, commercial real-estate prices have been attractive lately, and brick-and-mortar holds some inherent advantages over the digital world. “Communicating the brand image and value online is typically very, very difficult to do, Rabenhorst said. “…Touching and feeling the product is always the best. Ninety percent of all retail is occurring at a physical store, and we don’t expect that to change in the future.” “If you only know us by the catalog or you only know us by the website, it’s not the full experience,” he said. Besides selling merchandise, Bean stores house the company’s Outdoor Discovery Schools, which hold demonstrations and clinics on activities such as kayaking. The Brookfield Bean covers about 15,000 square feet, with men’s clothing on one side, women’s on the other and outdoor gear in the middle.

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