Consumers are being warned that they could soon start paying GST when they purchase goods online.
Even things such as downloading a song on iTunes could be subjected to GST.
Prime Minister John Key says it's inevitable that the cost of online shopping would go up as GST is charged to more goods and services.
GST is not currently charged on imported digital products such as music and film downloaded from services including iTunes. Physical goods bought online and worth less than $400 also usually escape GST.
Currently, Customs stop goods they believe is worth more than $400 and contact the buyer to arrange for them to pay GST.
The $400 threshold is derived from the amount Customs says it costs to inspect a package and its documentation at the border, arguing that it makes no fiscal sense to spend more than $1 to collect $1 of GST or duty.
SunLive asked people in the community what their thoughts on the proposed idea was.
Many of the people were for it as GST goes towards paying for education, health, roading and other areas.
3 comments
No difference made...
Posted on 29-08-2015 16:54 | By dgk
Most of the stuff I order from overseas still wouldn't be charged GST as I order direct from small time suppliers.
I'm not sure.....
Posted on 29-08-2015 19:13 | By groutby
.why this needs to be an issue, if similar goods were available in NZ at a sensible price, then most would surely be ok with paying GST on top of the purchase price wouldn't they?..However, most if not all of the low value items I buy are not available here anyway, and if they were, chances are with freight probably from Auckland with a "no hurry" mentality would make them less attractive to buy. Couple with that the very low standard of customer service we have here (in NZ) then the wait is well worth it. As far as the GST take for the Government, minimal (at this stage) I would think for the effort and cost involved.
All sounds good in theory
Posted on 30-08-2015 10:34 | By astex
Fact is that this is more unenforceable hot air from government. I buy from overseas companies that our govt has NO authority over and therefore will not collect gst for them. Most things are below the $400 value and not eligible. Many overseas companies also label goods as gifts so, once again, no gst. For any govt to control modern trade there needs to be only one tax, and that would be on transactions the same as paypal have done for years. All other taxes could be scrapped and growth would be high as the tax would only need to be around 3%. Oh, but wait, The rich could not "dodge" it so govt will not do it. Plus the ordinary worker would be around 14% better off. Oh hell! we can't have that can we?
Leave a Comment
You must be logged in to make a comment.