Travel costs rise via border levy

Arriving and departing from New Zealand will cost an extra $21.57 for air passengers and $26.22 for those on cruise ships from January 1 next year.

Primary Industries Minister Nathan Guy and Customs Minister Nicky Wagner have announced the rate for the new Border Clearance Levy following public consultation on the amount, the levy design and how it is to be paid.


Passengers arriving and departing from New Zealand by air will pay an extra $21.57 from January 1. Photo: Air New Zealand.

The levy will be NZ$18.76 + GST ($21.57) for air travellers and those arriving and departing on private craft, and NZ$22.80 + GST ($26.22) for cruise passengers.

The higher rate for cruise passengers reflects the additional biosecurity assessments required at ports around the country.

The levy is supported by Kiwifruit Vine Health and chief executive, Barry O'Neil, says MPI has carried out a thorough consultation process which the kiwifruit industry has been actively engaged in.

'KVH has always supported the levy as it will provide sustainable funding into the future and address New Zealand's increasing biosecurity risks as more and more passengers enter New Zealand,” says Barry.

'As a Government Industry Agreement partner, we provided input during the consultation period to ensure the best possible outcome was achieved for the kiwifruit industry and New Zealand.

'We believe the government has landed in an appropriate and pragmatic place as a result of the consultation.”

The kiwifruit industry is no stranger to unwanted pests and diseases, and remain supportive of any initiatives that increase protection at the border.

'As passenger numbers coming into New Zealand rise, so too does the risk of unwanted pests and diseases,” adds Barry.

'Therefore, it makes sense to have a funding mechanism that can keep pace with the changing risk profile, and those that create risks at the border will also fund the activities to mitigate them.”

Under the levy, children under two as well as crew and transit passengers will be exempt, as will the military, government crisis workers and anyone who purchased and paid for their ticket in full before January 1, 2016 for travel over the next 12 months.

'The levy will cover the border clearance costs for the increasing volumes of arriving and departing passengers (rising at 3.5 per cent to 4 per cent a year), while maintaining current levels of service,” Nathan says.

'All travellers are a risk as they could inadvertently carry ‘hitchhiker' pests or prohibited items with them.

'The levy will allow border activities to respond to future demand and create a more sustainable platform for border risk management services.

'In the past, these costs have been met by taxpayers. The Government considers it is fairer for the costs to fall on passengers travelling internationally.

'We have listened carefully to the concerns of the travel industry and stakeholders, and this has informed the design of the levy.

'It will be collected by airlines and cruise operators when tickets are purchased and passed on to customs, which is the most efficient and practical means of collection.”

Nicky says passenger volumes are forecast to increase from 10.1 million in 2014 to 13.3 million by 2018/19.

'The number of travellers coming to New Zealand will continue to increase with the levy in place, and as tourism grows, so too does the risk to New Zealand,” she says.

'The levy rate is set for 30 months and will be reviewed at the end of that period to assess its effectiveness and the need for any adjustments.

'It will bring New Zealand into line with many of our trading partners that recover costs from travellers, including Australia, the United States, the United Kingdom and China.”

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4 comments

theft

Posted on 14-10-2015 15:15 | By Captain Sensible

Adding GST to what is already a tax is theft and immoral...just what we have come to expect from the parasites we call "government".


Overit

Posted on 14-10-2015 18:27 | By overit

This all helps the surplus-just to spend on flags and pandas.


Rort

Posted on 14-10-2015 23:27 | By maildrop

This should sit alongside Air New Zealand's domestic fare setting. State sponsored rip off for a failing irrelevant service.


Here we go again

Posted on 15-10-2015 09:26 | By fletch

Perhaps the penalty should be on the people bringing food items etc into the country. Instead of the pathetic fine they get now it should be way higher and a trip home at their own expense


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