THE Federal Government should place a good and services tax (GST) on products bought from overseas online retailers, Harvey Norman chief executive Gerry Harvey says.

Mr Harvey said local retailers were at an "unfair disadvantage" in competing against goods bought from overseas.

Australians can buy goods online from overseas and not pay duty for products under $1000.



"The fact that people say ... it is too hard - that is bulls--t" Mr Harvey said in a response to a question at the company's annual general meeting in Sydney today.



"Other countries do it. We can do it."



Mr Harvey said the Federal Government wasn't addressing the problem.



"We have spoken to a number of politicians and their answer is 'it's too hard'," he said.



"'It is too much to collect. We'll upset the voters because they vote for us'.



"You are going to forgo about $1 billion in one year in tax, that is the GST they are going to lose in one year because this thing has escalated because of the parity."



The appreciation in the Australian dollar against the US currency has made buying goods more attractive for domestic shoppers.



Since June 30, the Australian dollar has appreciated around 15.6 per cent against the US unit.



"This is a huge, huge problem," Mr Harvey said.



"If you are in retail selling those sort of goods, you are severely disadvantaged."



However, online sales from overseas had little effect on Harvey Norman, Mr Harvey said.