Amazon’s exit from Australia a warning for NZ

Amazon’s exit from Australia a warning for NZ – Australian taxpayer advocate

31 MAY 2018

Amazon’s decision to pull out of Australia in response to a new online shopping tax shows the peril of the New Zealand Government’s plan to introduce its own ‘Amazon tax’, says the New Zealand Taxpayers’ Union, in conjunction with its sister organisation the Australian Taxpayers’ Alliance.

Australian Taxpayers’ Alliance Director of Policy Satya Marar (who is currently on secondment in New Zealand) says, “The Australian Government’s online shopping tax denies shoppers and families the same consumer choice available to billions of shoppers worldwide.”

“If this happens in New Zealand, Kiwis will be denied access to about 500 million products, most of which are unavailable locally. So instead of creating a level playing field, it only harms consumers.”

“Last year, an Australian senate inquiry was told that the online shopping tax would not make Australian retailers competitive, would not raise a significant amount of revenue and that the cost of implementing the tax would force major online platforms to exit the market or cease serving Australians entirely. Now we see these consequences in action.”

“New Zealand faces the same risk as it introduces its own Amazon tax. The Government wouldn’t need to assist domestic retailers with taxes on overseas competitors if it addressed local pressures such as zoning laws, strict labour regulations and red tape.”

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