Monthly Archives April 2016
April 20, 2016 New Zealand Finance
Exporters in China and New Zealand will see eased customs requirements in the near future.
New Zealand will be the first country to have a Joint Electronic Verification (JEV) with China for imports and exports, according to information in a press release issued by Customs Minister Nicky Wagner on April 19th.
The JEV will be an electronic data system accessible by Customs in China in New Zealand containing information regarding imports and exports between the two countries.
Currently, goods exported between China and New Zealand may qualify for tariff reductions not available on goods coming from other countries.
However, in order to enjoy the reduced tariffs, the exporter must provide a Certificate of Origin to show that the goods do originally come from either China or New Zealand.
The J...Read More
April 19, 2016 New Zealand Taxation
Increasing taxes on cigarettes have pushed New Zealand’s CPI upward, despite falls in price of travel and recreation.
On April 18th Statistics New Zealand released the latest data on the Consumer Price Index in New Zealand, showing a rise of 0.2 percent over the March 2016 quarter.
The increase to the CPI was caused mainly by an increase in the price of food, alcohol and tobacco, and housing, which contributed 0.216 points, 0.264 points, and 0.136 points, respectively.
The increases were countered by decreases to the prices of transport and recreation, which contributed -0.5 points, and -0.09 points, respectively.
It was noted that among alcohol and tobacco, the price of cigarettes was the biggest upward contributor, and the government’s annual hikes to the rate of excise taxes on tobacc...Read More
April 15, 2016 New Zealand Taxation
Small businesses in New Zealand will soon enjoy easier tax procedures and lowered tax bills.
The Prime Minister of New Zealand John Key has announced a package of tax changes aimed at helping reduce the burdens faced by small and medium sized businesses.
One of the key changes announced is the introduction of new “pay-as-you-go” system for paying Provisional Tax obligations.
The new system will be available to small businesses which utilize accounting software packages which are linked to the IRD, and will allow the business to make Provisional Tax payments based on their actual accounting profits, and not estimates of their profits for the year.
Further, businesses which make use of the uplift method for calculating Provisional Tax obligations will not face any Use-of-Money-Interest...Read More
April 13, 2016 New Zealand Taxation
Outdated tax brackets and creeping inflation are leeching away billions each year from taxpayers in New Zealand.
On April 12th the ACT Party issued a statement claiming that between 2010 and 2017 New Zealand taxpayers would have lost as much as NZD 2.1 billion due to “bracket creep”.
Bracket creep is a situation whereby growth in nominal wages does not lead to real increases in spending power, due to the twin effects of rising inflation levels and the taxpayer moving up to a higher tax bracket.
According to the ACT Party, over the years between 2010 and 2017 the average New Zealand household would have lost NZD 2 500 in total due to bracket creep, leading to a loss at a national level of approximately NZD 2.1 billion.
In the new statement, the ACT Leader David Seymour was quoted as ...Read More