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Retail NZ back 'Amazon tax' for international GST

  • News
  • February 5, 2018
Retail NZ back 'Amazon tax' for international GST

A new ‘Amazon tax’ bill proposed by previous National government could see international goods being taxed by the end of 2019.

This tax would cut out the ‘loop hole’ on internet shopping which allows international retailers to sell into New Zealand without paying GST.

A Cabinet paper created by former National government suggest that international firms should become responsible for levying GST on items worth less an $1000 that they sold into the country.

New Zealand retailers will no doubt back the bill as to level the playing field between international competition, even though it is estimated that $42 million from the tax payer in the first year would go straight to the government.

The bill is yet to be passed, as it was put on the back burner by National in September during the elections. Greg Harford, general manager of public affairs for Retail NZ, has said it abut time the unfair advantage is leveled.

“At present, the government actively disadvantages Kiwi retailers by making them pay 15 percent GST on sales. Foreign ‘etailers’ are not required to do so, which gives them a price advantage when selling to New Zealanders.”

Harford expresses the economic benefits of including an ‘Amazon tax’, ranging from an expected collection of $200 million in the first year and at least $5.8 billion in tax revenue over the next ten years.

“We are now the only country with a GST or VAT consumption tax that retains a high de minimis threshold, and we are therefore the only country which continues to confer significant tax and price benefits on foreign retailers at the expense of domestic business.”

NZ Retail says that if GST were pre-paid on these items by the supplier, around 390,000 parcels would no longer need to be assessed for GST as they entre the country.

“It is not suitable for the government to continue to turn a blind eye to global companies doing business here without paying their share of tax,” says Harford.

“Retail NZ strongly supports ‘efairness’ and has been campaigning for a number of years to have the government level the playing field for GST.”

Harford says NZ Retail would like to see the decision announced as part of this year’s budget. The proposed bill at the moment has an aim date of October 2019.

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Retail NZ calls for national rules around Easter trading

  • News
  • May 22, 2018
Retail NZ calls for national rules around Easter trading

A recent report carried out by Retail NZ has shown that council changes surrounding Easter trading was well received by both shoppers and workers. The report shows a strong lean towards councils opting to allow retailers to open or not during the holiday.

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Kiwi Property gains altitude in annual report

  • News
  • May 21, 2018
Kiwi Property gains altitude in annual report

An ongoing ability to connect with customers on a social level has been hailed as one of the reasons for Kiwi Property’s impressive financial growth for the last year. The report shows a record $1.8 billion in retail sales across the portfolio.

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The Warehouse Group switches to compostable bags

  • News
  • May 21, 2018
  • Sarah Dunn
The Warehouse Group switches to compostable bags

Following the lead of retailers like Mitre 10, Countdown and New World, The Warehouse Group is transitioning into offering fully compostable bags across the entire company. This means 254 stores from the red sheds; Warehouse Stationery; Noel Leeming and Torpedo7 will no longer offer petroleum-based plastic bags.

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Deadly Ponies debut appearance

  • News
  • May 18, 2018
  • Sarah Pollok
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New Zealand’s luxury leather accessories brand, Deadly Ponies, continues to make waves in the fashion world. Now impressing designers and industry icons alike at its debut in the Australian Mercedes-Benz Fashion Week.

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