Government Right to Be Cautious on Border Threshold
Changes
30 JUNE 2016 FOR IMMEDIATE RELEASE
The
Government is right to be taking a cautious approach with
potential changes to the threshold upon which GST is
collected at the border for low value goods, says
theTaxpayers’ Union. In response to Customs Minister Nicky Wagner’s comment
this afternoon, the pressure group’s Executive
Director, Jordan Williams, says:
“Reducing the threshold
so that the costs of collection exceed the additional
revenue would be an own-goal. New Zealand is known
internationally for having an efficient tax system with
relatively low administrative costs and a knee-jerk reaction
in this area would undermine that.”
“The best thing
the Government can do to increase the competitiveness of New
Zealand businesses is to lower the overall tax burden.
Increasing the scope of GST simply to create an
administrative barrier to low-value goods bought online
would be step back to the fortress mentality New Zealand
rightly abandoned in the
eighties.”
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