Reality of Bed Taxes Creeping Up in NZ

March 9, 2018 Taxation in New Zealand

Wellington bed taxWELLINGTON – New Zealand’s capital is eyeing up bed taxes and tourism taxes, despite backlash from the industry.

Earlier this week the city council of the capital of New Zealand, Wellington, opted to investigate the feasibility of widening the taxes applied to tourism-based industries in the area.

At the start of March, the Council announced that it was looking at instating a bed tax on accommodation providers in the city.

The proposal was met with almost immediate backlash from the hospitality industry.

It was claimed by the industry that a targeted bed tax would place a tax burden on providers, despite the fact that tourism benefits several industries at the same time.

The Council has now stated that it will broaden its view and try and create a new means by which a greater portion of the tourism industry could be targeted.

New Zealand does not yet have any tourism taxes, however, the topic was a hot issue during last year’s election, as many parties debated enacting taxes on tourists arriving in the country.