In a message dated 9/1/00 1:29:39 PM, simon_atwork@hotmail.com writes:
<< This question is interesting to me because we know why gasoline/petrol
costs
so much in the UK -- it is the tax that is applied. The world price of crude
is pretty constant, and I believe the pre-tax price of gas/petrol is not too
far different between the UK and the US.
Yet, I don't think engine oil is subject to such a tax, so why the 3x (or
even up to 6x) difference in price?
Simon >>
A better question is why nearly everything is more expensive everywhere in
the developed world--and some of the underdeveloped--than in the US? I
travel internationally--Asia and Europe, mostly--and I rarely buy anything at
all except returning gifties for the kids and wife. I know why it is
cheaper to buy Japanese electronics in the US than in Japan--the incredibly
multi-layered Japanese distribution system in which each layer must take
profits or the national culture would collapse. But what about elsewhere,
especially in an era of disappearing import & export tariffs?
Some of this must be the VAT (Value Added Tax) that is submerged into the
purchase price, but that can't be all of it.
As a side note, I was shopping in Seattle with a friend from Germany. He was
buying software that was (surprise!) much cheaper in the US than in Europe.
However, he was enraged when the 5% purchase tax was added at checkout. I
asked him why he preferred to have his 17% VAT hidden in the purchase price
rather than have to confront a 5% tax when buying. He really couldn't say.
Jay Donoghue
72B
72B-GT
66 Mustang
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