Quote:
Originally Posted by Lynx-lynx
Geoff the reason the Aus gov't doesn't introduce GST on goods under $1000 puchased overseas is because of the cost of capturing and enforcing the revenue...
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That is the same reason as here in NZ, collection of taxes and duties (if any, as few things have duty) under NZD60 (so goods to value NZD400 if GST only is levied) is stated to be uneconomic.
So it seems to me that the Government is planning on collecting GST on physical goods coming into the country even if it is at a loss (when in fact they are wanting to increase revenue). Else, as happens if tax and duty is payable they are going to charge a transaction fee (currently approx. NZD48) over and above those to cover their costs; that will kill smaller imports. It will also keep a small army of clerical workers busy transacting it all for every little parcel that comes into the country.
For digital products it seems to me that they must be planning to send a frigate to threaten every country who does not create legislation forcing all their own internet digital products suppliers to comply with NZ's tax legislation. Wherein lies a problem in that NZ has only got 2 frigates and so only 2 countries can be threatened and those will have to be countries with no navy at all.
Else, the Government is going to block all the millions internet sites of digital products sellers around the world from viewing in NZ unless they comply with NZ tax legislation; that will keep someone busy.
The whining of the retailers is pathetic, but behind the scenes I do know there are some good retailers who sell on the web and are very quietly doing well selling from NZ to foreign buyers as well as locally because they know how to operate competitively. The whiners are happy to claim they are disadvantaged by the 15% GST but they never mention the cost disadvantages foreign sellers into NZ face and so the whiners are just lobbying a selfish cause.
For example, a pair of shoes that retails in NZ for around USD140 may be found on US web sites for around USD50-60 but then the freight on top of that may be USD40 for tracked rapid courier delivery which leads to the all up price being around USD100. So even with US suppliers facing a freight cost approaching the cost of the shoes themselves NZ suppliers still cannot compete. Furthermore the product selection of NZ suppliers is abysmal in comparison.
Furthermore, much of the whining is coming from apparel and shoe retailers and again they don't mention that they are among the very few who have the luxury of being protected in NZ by duties on imported competitive goods (that duty being currently 10% except on babies apparel which is zero rated).
I guess it is clear that I have very little sympathy with the complaining retailers, but I should say that there are some very efficient ones too (and as I said I know some of those are doing ok exporting via web sales too) and those I am very supportive of; else our purchases are imported (another pair of shoes due today from USA
).