INDEPENDENT NEWS

More work needed before changing threshold

Published: Thu 30 Jun 2016 12:36 PM
Hon Nicky Wagner
Minister of Customs
30 June 2016
More work needed before changing threshold
Customs Minister Nicky Wagner says Customs is continuing to look into different ways of collecting tax effectively for low-value imports before proposing to lower the threshold at which it is collected.
“The volume of low value goods imports has grown by about 14 per cent per annum and is expected to double over the next five years. Customs does not currently collect GST and tariff duty if the total tax owed is under $60,” Ms Wagner says.
“The current $60 threshold benefits online buyers, but is unfair on our local retailers who pay tariff duty and GST on their bulk shipments. The government acknowledges that a lower threshold would help to level the playing field, but there’s no quick or easy solution.
“Customs has carried out extensive work and consultation over the past year but needs to look into more detail around what some of the collection mechanism options could look like and what the border transaction fees might be.
“Once Customs has a better understanding of the best ways to collect tax for low-value imports, we will look to lower the threshold, potentially from the 2018/19 financial year.
“While that would be fairer and help to protect the integrity of our GST system, it would not be appropriate to propose any changes in the short term without appreciating its impact on industry and consumers.
“By lowering the threshold too soon, there is a risk that goods to be held up at the border needlessly, and that collection costs would exceed revenue gained.
“No changes will be made without public consultation. Everyone will have an opportunity to get the full picture and make submissions at that stage,” Ms Wagner says.
ends

Next in New Zealand politics

Gordon Campbell on welfare vs infrastructure spending
By: Gordon Campbell
New direction for criminal justice reform
By: New Zealand Government
Surgical mesh restorative justice report received
By: New Zealand Government
Government’s power to order decryption must respect privacy
By: Joint Press Release
National will invest in quality healthcare
By: New Zealand National Party
Report on combatting foreign election interference delivered
By: RNZ
Name suppression lifted for officers A & B
By: New Zealand Police
Child Poverty Monitor: Big, bold, permanent change needed
By: Office of the Children's Commissioner
Chief Victims Advisor reappointed for a further two years
By: New Zealand Government
Justice report highlights systemic racism and inequality
By: Green Party
"The Best Christmas present ever"
By: Wellington Howard League
First Step toward Protecting Our First Responders
By: New Zealand First Party
Report: Stories of Survivors of Surgical Mesh
By: Ministry of Health
National will deliver high-quality care for women
By: New Zealand National Party
Surgical Mesh Restorative Justice Report Finally Released
By: Mesh Down Under
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media