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Re: [SLUG] NZ proposes GST on downloaded software.[ Here next ?]



Jobst Schmalenbach wrote:

> On Thu, Jun 28, 2001 at 12:53:38AM +1000, Adam F. Bogacki (afb3@nospam.primus.com.au) wrote:
> 
>>  The NZ government Government is proposing to charge GST on software
>> downloaded over the internet, possibly threatening the open-source model of
>> software distribution.
> 
> 
> This is actually in FAVOUR of linux. 
> If companies have to pay more for software (add 10% to the purchase) they'll
> start thinking and move to a more viable option(s).
> 
> ....... and $0 + 10%gst = $0

Ummm, I don't think you understand how GST works. At least here in Oz, 
companies get to deduct the GST they have paid from the GST remittance 
they make to the government.

So, the reality is that for companies, things do not cost 10% more, so 
there is no advantage to using free software.

> jobst

Regards
-------
Richard Sharpe, rsharpe@nospam.ns.aus.com, LPIC1
www.samba.org, www.ethereal.com, SAMS Teach Yourself Samba
in 24 Hours, Special Edition, Using Samba


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