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

PM's Speech: NZ Moves To Red


Nine COVID-19 cases reported yesterday in the Nelson/Marlborough region have now been confirmed as the Omicron variant, and a further case from the same household was confirmed late yesterday....
More>>

ALSO:


Gordon Campbell: On Responding To The Need In Tonga


The power of the Tonga eruption (and the size of the aid response being mounted) have been sobering indications of the scale of this disaster. The financial impact is certain to exceed the damage done by Cyclone Harold two years ago, which was estimated at the time to cost $US111 million via its effects on crops, housing and tourism facilities. This time, the tsunami damage, volcanic ash, sulphur dioxide contamination and villager relocation expenses are likely to cost considerably more to meet...
More>>



 
 



Science Media Centre: Omicron Outbreak Would Move The Country To Red - Expert Reaction

The Prime Minister has announced if Omicron cases spread into the community, the country will move to the traffic light system's Red setting within 48 hours. Jacinda Ardern also mentioned there will be changes to the country's testing regime, with more use of Rapid Antigen Tests... More>>


Government: New Zealand Prepared To Send Support To Tonga

New Zealand is ready to assist Tonga in its recovery from Saturday night’s undersea eruption and tsunami, Foreign Affairs Minister Nanaia Mahuta and Defence Minister Peeni Henare said today... More>>


Ministry of Health: COVID-19 Immunisation Starts For 5 To 11-year-old Tāmariki

More than 120,000 doses of the child (paediatric) Pfizer vaccine have been delivered to over 500 vaccination sites around New Zealand as health providers prepare to start immunising 5 to 11-year-olds tamariki from today, 17 January... More>>



Statistics: Departures Lift Border Crossing Numbers

The number of people crossing New Zealand’s border went up in November 2021, mostly due to an increase in departures, Stats NZ said today. There were 28,700 border crossings in November 2021, made up of 12,300 arrivals and 16,400 departures... More>>


Financial Services Federation: Open Letter To Government From Non-bank Lenders: The Path Forward On CCCFA Changes
Responsible lenders are not interested in telling the Government “I told you so” when it comes to unintended consequences of changes to lending laws that are now causing grief for everyday Kiwis seeking finance... More>>

CTU: Too Many Kiwi Workers Financially Vulnerable As Omicron Looms
With New Zealand on the precipice of an Omicron outbreak and the economic upheaval that comes with it, the CTU’s annual Mood of the Workforce Survey shows the vast majority of kiwi workers do not have the financial resources to survive a period of unemployment... More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels