NZ Tourist Tax Needs Better Planning

December 5, 2017 Taxation in New Zealand

tourism NZWELLINGTON – Taxes collected from tourist should flow to regions which attracted the tourists to New Zealand, says tourism group.

In a press release on December 4th the advocacy group Regional Tourism NZ called for “a coordinated national discussion on tourism tax”.

The newly elected Labour government in New Zealand has previously campaigned on the promise of a NZD 25 tourist tax to be paid by each international visitor coming to the country.

However, despite the campaign promises, there have not yet been any confirmed details of how the tax will work, and whether the proposed rate will be maintained.

It was explained in the press release that the growth of tourism in New Zealand is having a disproportionate benefit across New Zealand, with many regions benefiting greatly from rising tourist numbers, while some regions are suffering under the strain of having to fund and maintain the infrastructure needed to support tourism.

It was indicated that the funds raised from a tourist levy should be used to benefit the regions which are funding the facilities used by tourists.

The issue of a tourism tax became prominent during the election, as many regions across the country claimed that while they pay for the infrastructure used by tourists, the tax benefits flow to the central government, leaving the costs to be paid by local ratepayers.