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

On Thu, Jun 28, 2001 at 04:02:03PM +0930, Richard Sharpe (sharpe@nospam.ns.aus.com) wrote:
> 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.

I dont, thats why I have accountants! But I actually asked two of them
what happens when I buy software from USA (now and future, if we need to pay 10%).

Software (currently) is not taxed if you **download** it. If it gets
via customs, add 10%. In the future (if this law will get through) downloads
will be taxed with 10%, too! (BTW governments would be silly not to take
this revenue, thinking that MOST of software will be via internet anyway!!)

And yes you get *SOME* of it back. You will not get all of it back or
there wouldnt be any point of the 10% GST anyway, wouldnt it????

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

No advantage?
You have in your signature "SAMBA" included. Lets take that as an
example, shall we?

WinNT server    : $600
Per seat license: $ 70 (not sure here, little bit more/less)

So for a company with 20 workstations:

20X $70
  $2000 versus Samba: $0

No incentive?
You must be kidding!


My software never has bugs; it just develops random features.

|            __, Jobst Schmalenbach, jobst@nospam.barrett.com.au, Technical Director|
|  _ _.--'-n_/   Barrett Consulting Group P/L & The Meditation Room P/L      |
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