Confusion in NZ on GST levy plans
- Latest News
- Thursday, 16 November 2017
New Zealand’s new government has back pedalled on earlier comments that it was preparing to make overseas retailers collect GST on goods bought by local residents.
At present there is an exemption for goods valued at under NZ$400.
The issue is of significance to the air cargo industry because a large percentage of this trade is carried by air. Levying GST is likely to impact on traffic, although opinions vary on how big the effect might be.
Stuart Nash, in his role as Revenue minister, commented on a high-audience radio program that the government would “absolutely” extend the law to cover all goods and services purchased from overseas.
Finance minister Grant Robertson has however told parliament no decisions have yet been made and the matter still is under discussion. It will be considered by a tax working group, along with other taxation issues.
The embarrassing turnabout, one of several in the first few weeks of the Labour-led multi-party administration, gave the opposition National Party – by far the biggest in parliament but unable to form a government under NZ’s complex electoral system – plenty of opportunities to deride Nash for over-enthusiasm.
It also left industry lobby group NZ Retail red faced. The organisation has long lobbied for extension of GST and was quick to congratulate Nash on his “absolutely” statement.
“While the timeline has yet to be finalised, we are really pleased that minister Nash is taking the issue seriously, and we urge him to implement a GST registration requirement from 1 July 2018, in line with the Australian government,” said spokesperson Greg Harford.
- Kelvin King
