FreshDirect Tax Break Stirs Storm
By: Leon Castles
on Tuesday, November 20, 2012
Bronx based FreshDirect has decided to move to Bronx but that is because the company is going to enjoy a tax break. Although, that sounds fair enough to the company many billionaire competitors feel that is totally unfair and that this move is violating various laws. Many business owners and coalition groups have decided to form a group and rally against it on the steps of City Hall. The group believes that such relocation tactics are totally unaccepted and that the government cannot do that to boost one particular business company.
According to the groups, FreshDirect is slated to get $127 million in tax breaks which is $80 million from the city and $47 million from Albany. The government said that they would look at FreshDirect as a wholesaler and not a retailer and therefore they are entitled to get the tax breaks which all local groceries do not get since they are retailers. John Catsimatidis CEO of Gristedes said that offering such tax breaks is very unfair and provides competitive advantage to the company. This means that most of the businesses in the same sector will be paying taxes while FreshDirect will enjoy tax breaks. It is an issue of quality fundamental fairness in the business. Although, the company is bringing lot of job opportunities to Bronx most entrepreneurs are against the company.