The seismic shift of ‘Retail’ consumers going from ‘Pedestrian Shopping’ to ‘Internet Shopping’, steadily increases around the world. This fundamental change in buyers’ techniques is brought about for both convenience and now, due to necessity. The Coronavirus [CV-19] Pandemic, tragic as it is as an Influenza, which can kill, has produced a ‘Commercial Side’. This includes: Increases in retail sales of ‘Pathogen Preventers’ [Sprays, Wipes, et al], Toilet Paper, Vaccine Research Equipment, Pedestrian Control Devices, Bicycles, and Internet Entertainment Contracts.
Many governments, have dwindling revenue streams, caused by negative commercial effects of CV-19. They are now determined to supplement money flows to their Treasury Departments with Value Added Taxes; this, as well as other revenue gaining approaches. We, in International Business, are loathe to see increases in taxes without commensurate increases in benefits to those who pay the taxes. However, we fully understand the needs of governments to sustain themselves; without governments, chaos will surely arise for populations. The ‘fine balance’ that is required: A particular tax to not ‘overburden’ the taxpayer, yet help provide sufficient cash flow towards required treasury needs.
We think there is an even better way to facilitate Treasury Department needs; Close down ‘small’ “Money Launderers” illicit operations of Criminal Enterprises. In particular, by stemming cash ‘outflows’ from a country, a economy is stronger. Also, by carefully examining ‘large’ “legitimate” Corporate investments in other countries, one may detect money laundering on a grander scale. “Piety”,of both behavior and thought, is not evidenced by merely wearing a fine suit and wearing a necktie. Over the years we have met many individuals who have tried to appear, through attire and professional demeanor, as ‘Innocent as Lambs’ but in reality were ‘Black Mambas’, poisonous to their cores. They surely did, do, and will do everything to keep their cash, “Governments’ needs be damned”, is their credo. Fortunately, they are not in great abundance.
The ‘Bottom Line’ is: Treasury Departments need to be aware how, where, and why countries’ cash flows, particularly illicit, are occurring, and then, if criminal, stop them. Also, taxation of the citizens, should be at a level commensurate with the citizens’ gains from their ‘acquisitions’.
Reality: Like superb mechanical Wristwatches, those entities with the greatest accuracy, which endure over the longest time, are of the finest balance.