Inbound tourism GST law change a pragmatic step

Inbound tourism GST law change a pragmatic step

The solution to the GST dispute between New Zealand’s inbound tour operators and Inland Revenue is a pragmatic step on a complex issue, the Tourism Industry Association New Zealand (TIA) says.

TIA gave its backing to the Inbound Tour Operators Council (ITOC) in its efforts to resolve the issue which had the potential to cost operators millions of dollars in backdated taxes.

“We had serious concerns that a vital channel in the distribution system was being put under undue pressure, at a time when global economic conditions were already creating major business challenges,” TIA Chief Executive Tim Cossar says.

“Today’s announcement by Prime Minister John Key is pragmatic and will have the benefit of giving inbound tour operators certainty in their business planning.”

TIA was pleased to support ITOC through its discussions with the Government and Inland Revenue on the issue. 

“While this is not exactly what inbound operators wanted, we recognise the significance of any change to tax laws. It is clear the Government has listened to the tourism industry represented by TIA and ITOC.  This resolution demonstrates the value for operators of belonging to a strong industry association,” Mr Cossar says.

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