Retail NZ is calling for the government to fix an off-shore trading loophole which allows foreign retailers to trade into New Zealand without paying GST.
The Government has indicated it's ready to crack down on multinational companies' tax avoidance in New Zealand, but Retail NZ says there's a key component missing from its plan - GST.
New GST legislation for digital services comes into effect tomorrow in New Zealand, but Booksellers NZ and Retail NZ are critical of it. They say while this is good news for big players like Sky TV, the Government is missing the opportunity to collect revenue from low-value goods bought online.
GST and duty is not paid on most goods worth less than $400 that are bought by Kiwis from foreign retailers. Retail NZ has been campaigning for the Government to change this under its #eFairnessNZ, but last month, the Government shelved the issue until at least 2018. Retail NZ's acting chief executive Scott Fisher responds.
The Government has announced that it may implement tax on digital goods from as early as next year. As for other goods from overseas websites, Revenue Minister Todd McClay says the Government realises it’s an important issue to retailers, but it needs to work through “logistical issues” so it doesn’t inconvenience consumers.