Retailers say the Government's plan to tax purchases from foreign websites is great news for local businesses, Radio New Zealand reports.
The Prime Minister said the country was missing out on more than $200 million a year in GST from other countries and added that the Government could introduce measures taxing overseas purchases as early as this parliamentary term.
The Retailers Association has been lobbying for GST on online purchases for more than a year and its chief executive, Mark Johnston, said shoppers needed to be aware of the greater good.
“I don't think anybody wants to pay more than they have to - the reality is New Zealand is a very small market globally and we're never going to be able to compete fully on price with some of the bigger global markets.
“When you buy locally, you're investing in local communities... I think most Kiwis are pretty happy to pay their fair share of tax, and that includes GST.”
Chief executive of Briscoe Group, Rod Duke, said the current system of only taxing overseas goods worth more than $400 was killing local businesses.
“I think if you have a look at the business reports of the last six to 12 months, you'll find that at least 10 significant retailers have simply just gone out of business in this country,” he said.
Consumer NZ chief executive Sue Chetwin said she wanted to know how any new policy would work, and whether overseas retailers would be taxed directly, or by customs at the border.
PricewaterhouseCoopers GST specialist Eugen Trombitas said the IRD, tasked with drafting the policy, would pay to look overseas for advice and added that New Zealand could not afford to be left behind.