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Amazon tax must be delayed in light of service shutdowns

The New Zealand Taxpayers’ Union is calling on the Government to delay the introduction of the ‘Amazon tax’ in light of reports Amazon will withdraw its international websites while it processes how to comply with new GST rules, says the New Zealand Taxpayers’ Union.

Taxpayers’ Union spokesman Louis Houlbrooke says, “Last year, we warned that the ‘Amazon tax’ would lead retailers to block New Zealanders from using their services. Now we’ve been proved right, before the tax has even been implemented.”

“In the case of Amazon, we see that it’s not just the direct cost, but the complexity that is making it difficult to sell to New Zealand shoppers. In the long run we risk not just seeing established sellers shut up shop, but potential new ones will decide it’s just not worth the cost or bother to extend sales to Kiwis.”

“This means customers are denied choice and competition, and that’s on top of the direct cost of the tax itself. The timing of the tax’s introduction, just as shoppers are beginning their Christmas shopping, is grinchy.”

“The Government should, at the very least, delay the introduction of the tax to avoid disruption of the holiday season.”

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