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

 

Retailers Welcome Government Moves on Gst Threshold

Retailers Welcome Government Moves on Gst Threshold

Retailers will be pleased by news reports that Revenue Minister Todd McClay is taking a paper to Cabinet this month that will allow New Zealand retailers to compete on a fair basis with foreign websites by substantially reducing the threshold at which GST and duty is levied on imported goods.

“A current loophole in the law means that most goods bought from foreign websites can be imported into New Zealand free of GST and duty if they are worth less than $400, but this acts as a reverse tarrif which penalises Kiwi businesses and makes it harder for New Zealand retailers to compete with multinationals,” Retail NZ’s General Manager for Public Affairs, Greg Harford, said today. “It’s been reported that Revenue Minister Todd McClay is going to Cabinet this month with proposals to deal with this issue, and retailers around New Zealand will be welcoming this news.

“The current loophole is hurting Kiwi businesses and costing Kiwi jobs – but it’s also fundamentally undermining the integrity of the GST system, and depriving the Government of revenue that it needs to provide services for New Zealanders. We estimate that the loophole is costing the Government between $200-500 million this year – and the revenue is hole is getting bigger all the time as Kiwis increasingly shop offshore. In June, there was 29 per cent increase in spending on foreign websites, so it’s a real problem for the Government as well as retailers, and we are pleased that the issue is being given serious attention.

“New Zealand and Australia have the highest exemption thresholds in the world and we are well out of line with international best practices. The Australian Government recently announced that it would be seeking States’ agreement to reduce the threshold from $A1,000 to A$20. If the Australians can do this, there is no reason why the New Zealand Government can’t follow suit,” said Mr Harford.

“Collecting GST in the modern Internet age should be relatively straightforward and cost-effective. Retail NZ and Booksellers NZ have been running the #eFairnessNZ campaign, calling for the Government to require foreign websites to register for GST and collect the tax at the time purchases are made. GST and duty should be collected at the border on all items worth more than $25 if the foreign website doesn't register for GST.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Budget '17: Budget Spends Down Future Surpluses

Tax cuts for every working New Zealander, targeted to low and middle income earners, more generous assistance for families and renters, and a massive spend-up on public services infrastructure mark Finance Minister Steven Joyce’s election year Budget.

The package of changes to income tax thresholds, the Working for Families programme, and the Accommodation Supplement is the Budget’s political centrepiece and will cost $2 billion a year. More>>

Scoop Full Coverage: of Budget Announcements & Reaction
Latest: Scoop Search

ALSO:

 
 

Auditor-General Stands Down For Investigation: Gordon Campbell On (Not) Taking Responsibility

So Martin Matthews, our current Auditor-General wishes he could have detected “earlier” the fraud that occurred on his watch at the Ministry of Transport. Hmmm. But he could have detected it earlier, surely? That’s the point. More>>

ALSO:

NGOs Pleased: Govt To Halt Collection Of Client Data

Brenda Pilott, the chair of ComVoices and national manager of Social Service Providers Aotearoa, congratulates the government on its decision to call a halt to the collection of individual client data until the concerns of not-for-profit service providers have been worked through. More>>

ALSO:

Gosh: Blasphemy Law Repeal Struck Down

Chris Hipkins, the MP who tabled a Supplementary Order Paper to add our Blasphemy Law to the Statutes Repeal Bill, said this was a "sad day for freedom of speech, tolerance, and leadership". More>>

ALSO:

Gordon Campbell: On The Navy’s Dealings With Fat Leonard, And Twin Peaks

At an official level, our “she’ll be right” attitude routinely spills over into a keen resentment of anyone who suggests the outcomes may be less than satisfactory… The Navy has now gone one step beyond. It won’t even ask itself whether it did a good job. More>>

ALSO:

NZDF: Fifth Rotation Of Troops Heads To Iraq

The fifth rotation of New Zealand Defence Force troops left today for a six-month mission training Iraqi soldiers. More>>

ALSO:

Gordon Campbell: On The Demonising Of Iran

Will New Zealand still be willing to pursue its recent trade overtures to Iran, now that US President Donald Trump has used his speech in Riyadh to single out Iran as the main source of terrorism and instability in the Middle East? More>>

ALSO:

 
 
 
 

Opening The Election Supporters

 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election