Retailers Push for GST Reform
April 14, 2015 New Zealand Taxation
Retailers are campaigning for online purchases to become more expensive, with GST to be levied on all purchases above NZD 25.
On April 14th Retail New Zealand and Booksellers New Zealand launched a collaborative campaign to pressure the government into enacting GST on low-valued goods and service purchased overseas.
Currently, GST is not levied on overseas purchases unless the total value of the product is over NZD 400, however, the campaigners are calling for this threshold to be lowered to NZD 25.
It is also suggested that foreign retailers should be required to register for GST in New Zealand in order to provide products to consumers in the country.
It is estimated by experts at Retail New Zealand that the country is missing out on approximately NZD 200 million per year in the collection GST due to the current tax threshold.
In a statement Retail New Zealand claimed that the money lost due to the low threshold would be enough to cover the salaries of 4 345 extra primary school teachers, or 9 091 hip replacements, or to cover the budget of Radio New Zealand 6 times.
Photo By: StormKatt