Plans for New Tax

August 4, 2008 New Zealand Taxation  No comments

A new levy, already dubbed “the Green Tax” by the tourism industry, has been put forward by the New Zealand Government. According to the proposed plan, all international tourists will have to pay $25 on arrival into New Zealand. This is estimated to raise a possible $61 million annually, towards the protection of the environment.

The unofficial discussion of the details and plans of implementing “green tax” took place in Christchurch, during the last Tourism Conference. The plan was announced by Tourism Minister Damien O’Connor. Most industry experts are unsatisfied with the propositions, primarily because international tourist already contribute significant amount into the New Zealand Economy. It is also believed by some that the new “green tax” could make New Zealand tourism less competitive in the international market.

Plans of introducing GST refunds for international tourists are still not on the agenda for New Zealand Government, even though such practises are commonplace in many worldwide tourist destinations.