Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Import News: Anderton's Tax Grab Illegal

Import News from the Importers Institute 13 November 2001 - Anderton's Tax Grab Illegal

Acting Customs Minister Jim Anderton announced that, from 1 July 2001, a "subsidy reduction" of $18 per import shipment will be levied on all shipments with a value of more than $1,000. The Importers Institute called this the most facile spin yet to come out of this government. The so-called "subsidy reduction" is a new tax that will transfer $15 million from importers' bank accounts to government coffers.

This initiative is yet another government attack on business. The needs of business are simply not understood by the collection of teachers, lecturers and trade unionists that comprise this government.

At first, we thought that this was yet another tax grab from a government in perennial need of our money to spend on 'necessities' like a new State-owned bank and opera troupes. Another plausible explanation was that Mr Anderton was in need of bolstering his anti-business credentials to the Alliance anoraks, in the lead up to their conference last weekend. It has now transpired that Mr Anderton was replying to requests from an outfit called Export Institute of New Zealand, Inc.

A Mr Murray Davies is the national president of that organisation. We suggest that all those exporters who are happy to pay the new fees on all their imported components should send Mr Davies a congratulatory email (to info@export.org.nz). As Mr Davies is currently touring Mexico, Chile, Uruguay, Brazil and Argentina on a government-sponsored mission, he will be able to pass on your good wishes to fellow missioners, including Prime Minister Helen Clark. WTO Rules (GATT Article VIII: Fees and Formalities connected with Importation and Exportation) allow the imposition of some customs processing fees provided they are "limited in amount to the approximate cost of services rendered and shall not represent indirect protection to domestic producers or a taxation on imports for fiscal purposes".

It is interesting to note that the Minister specifically excluded exports from the new tax. In fact, he said that it "will put everyone on a level playing field". This means that the new tax is little more than a backdoor tariff - and illegal. The Importers Institute hopes that other governments will take the appropriate action against Mr Anderton's idea in the WTO.

-- Previous Import News items are published on our Internet site http://www.importers.org.nz. If you do not wish to be included in this mailing list, please reply to this message with the word REMOVE in the subject line. If you would like us to send Import News to friends or associates, please ask them to email info@importers.org.nz with the word SUBSCRIBE in the subject line.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>

Elsewhere:

Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:

Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>