I’m not sure how Todd McClay thinks that breaking John Key’s ‘no new taxes’ pledge is going to help National but he has decided to bring in a tax on internet purchases anyway.
The Government is moving to slap the goods and service tax on online service purchases, which will mean a price rise for the likes of subscriptions to Netflix and Apple services.
It is proposing a law change which will require the overseas retailers to be GST-registered and for them to return the tax to the Government – which says it is now missing out on around $40 million a year and growing.
Currently if you buy anything worth less than $400 from overseas you don’t have to pay the 15 percent GST.
“It is about creating a level playing field for collecting GST and putting New Zealand businesses and jobs ahead of the interests of overseas suppliers,” Revenue Minister Todd McClay said.
The Bill was introduced to Parliament today and the Government hopes the law will be in place in October next year. Read more »