Carbon Tax Hurting NZ Shipping Operators

February 13, 2017 Taxation in New Zealand

Shipping in New ZealandWELLINGTON – Environmental taxes in New Zealand are leaving the burden of the tax on local shipping operators, while ships visiting on the short term are able to skip the levy entirely.

The New Zealand Shipping Federation has recently spoken out against taxation rules, which, it claims, are unfairly putting local shipping operators at a disadvantage.

Currently New Zealand has an Emissions Trading Scheme which sees oil fuel companies buy carbon credits to pass on to clients.

It was claimed that the Emissions Trading Scheme ultimately costs operators as much as NZD 250 000 per ship.

However, foreign ships which visit New Zealand and only make one or two stops are exempt from the tax, despite the fact that they do complete deliveries within the country.

According to the New Zealand Shipping Federation, the differential tax treatment puts local operators at an advantage.

The Federation executive director Annabel Young explained the potential impact of the tax treatment, saying “…in other countries, and internationally, it is accepted the shipping is the most efficient way to move goods or people and, therefore, you don’t want to penalise them by imposing carbon charges… it is a direct imposition on our costs and, at some point, it is going to feed through into the cost of moving freight and people by ships.”