Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Anti-SME and anti-growth tax “by stealth….”


Anti-SME and anti-growth tax “by stealth….”

“Yet another Government chip against small-medium enterprises…. and a tax against business by stealth.”

Michael Barnett, chief executive of the Auckland Chamber of Commerce, was responding to the introduction of a fee for import transactions that the Custom Service has confirmed will be charged from 1 December 2002.

“I am extremely disappointed and angry that Government is continuing to shoot itself in the foot with revenue gathering measures that are clearly designed to hurt small-medium businesses and can only be interpreted as a ‘tax by stealth’, “ said Mr Barnett.

Why else would the Customs Department make a media release headed: “IMPORTANT CHANGES TO IMPORT CLEARANCE PROCESS” and go on to explain that “the main change is the introduction of a fee for import transactions, due to be charged from 1 December 2002”?

Certainly, the import transaction fee seems small – just $18 (GST inclusive) – but this is on EVERY commercial transaction which will add up to thousands of dollars off the bottom line for importers.

There are also“important” points of principle and detail at stake, he said.

On principle – By imposing the tax, Government is not only breaching its promise of “no new taxes” but is deliberately hitting SMEs in the pocket, while its rhetoric claims to be encouraging them to help build a growth-led economy. “There is a huge contradiction and lack of consistency in Government policy that the Government needs to explain and justify,” said Mr Barnett.

On detail – the tax impacts differently between commercial and private importation. “Private imports under $1000 in value will not be charged the tax, which means they will also escape GST, while every commercial import with a duty and/or GST liability of $50 or more will be charged the tax plus the GST – i.e. a form of double taxation!!”

The tax will penalise commercial imports compared to private imports with the raising of the threshold for the tax from $400 to $1000, and this opens up “private importers” to do many shipments in parallel importing arrangements.

“It’s crazy, it’s punitive against SMEs, it’s inconsistent with the small-scale private importer. It’s time Government realised that building a growth-led economy starts with a sympathetic and supportive approach to our SMEs – the engine room of our future economy,” concluded Mr Barnett.


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Another Reason To Loathe HR Departments (And On The Teachers Strike)

This morning’s news item about Police emergency call centre staff turning up for work while they’re sick – because they’re afraid their sick leave statistics will be used against them, and their jobs put in jeopardy – is not an isolated case...

Obviously, sick people shouldn’t be being treated by doctors and nurses who are themselves sick and potentially infectious. Similarly, Police emergency calls also need to be fielded by people who’re feeling alert, and on top of their game. More>>

 
 

MPs' Computers To Be Searched: Inquiry Into Leak On Simon Bridges' Expenses

An inquiry has been launched to find out who leaked the National Party's expenses to the media... Parliament's speaker, Trevor Mallard, said a Queen's Counsel would lead the inquiry with the help of an employment lawyer and also someone with forensic IT skills. More>>

ALSO:

Teachers Strike: Nationwide Rallies And Marches

Teachers and principals voted for a full day strike to be held on 15 August to send a strong message to the Government that the current collective agreement offers from the Ministry of Education would not fix the crisis in teaching. More>>

ALSO:

Wellington.Scoop: City Council Ends Its Support For Jackson’s Movie Museum

The Wellington City Council and the Movie Museum Limited have today announced a mutually-agreed parting of the ways for a joint project between the Council’s Convention Centre and TMML’s Movie Museum... Both parties remain optimistic for the future of their respective projects. More>>

Pay Equity: Historic Settlement For Education Support Workers

The New Zealand Educational Institute (NZEI) and the Ministry of Education today signed Terms of Settlement to address a pay equity claim for 329 support workers who work with very young children in early childhood and primary schools. More>>

ALSO:

Gordon Campbell: On The Stereotypes About Jacinda Ardern

Routinely, female politicians get depicted as either show ponies or battle axes, with little room for anything else in between. .. More>>

Weekend Interviews: "Discriminatory And Racist" Aussie Deportations

The former president of Australia’s Human Rights Commission Gillian Triggs says deportations have risen dramatically in Australia since 2014 when ministers and ministerial delegates were given the power to cancel visas - and half of those being deported are New Zealanders. "These are massive numbers, actually escalating dramatically."... More>>

ALSO:

Legal Challenge: Prisoner Has 9 Boxes Of Documents Seized

Human rights organisation People Against Prisons Aotearoa says a prisoner they advocate for has had 9 boxes of legal documents seized from him just days before his case against the Department of Corrections was to be heard. More>>

Single-Use Plastic Bags: Govt To Phase Them Out

Single-use plastic shopping bags will be phased out over the next year, Prime Minister Jacinda Ardern and Associate Environment Minister Eugenie Sage announced today. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages