accomidation tagged posts

Bed Tax Could be on the Way

December 18, 2014 New Zealand Taxation

The Prime Minister has voiced his support of a bed tax, but the Treasury claims that it would set a damaging precedent.

While at a function in Queenstown on December 17th the Prime Minister John Key indicated that he supports the proposal to implement a bed tax in the city in order to pay for local infrastructure.

He explained that the reasoning behind the proposal “…is that you’ve got a small rating base, you’ve got a million-odd people that pour in here every year, you’ve got a huge amount of demand on resources, and why the hell should ratepayers have to pay for it?”

He added such a tax would be set at a small rate, which would be unlikely to deter tourists from coming to the city.

However, the New Zealand Treasury has previously voiced its opinion on the proposal, claiming that i...

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