Category Taxation in New Zealand

Electric Cars Skip Petrol Tax Hike in New Zealand

April 24, 2018 Taxation in New Zealand

Electric vehicle taxWELLINGTON – Should electric cars have to pay an electric tax to cover the damage they cause to roads? Some New Zealanders think they should.

Controversy is arising in New Zealand regarding the potential tax benefits to be seen by electric cars after the introduction of fuel taxes in the country’s biggest city, Auckland.

Currently, the government of New Zealand is investigating the feasibility of hiking petrol taxes in New Zealand by between NZD 0.09 per litre to NZD 0.12 per litre, with the Auckland Council looking to enact a further hike of NZD 0.115 per litre of petrol sold in the city.

The new taxes are intended to be used to help fund and develop new roading projects, improve road safety, while also paying for new public transport and rail developments.

Some vehicles, namely diesel...

Read More

Petrol Taxes in NZ Will Hit the Poor and Old Cars

April 5, 2018 Taxation in New ZealandUncategorized

petrol tax in New ZealandWELLINGTON – New Zealanders who drive old and inefficient cars will see their tax bills rise.

On April 3rd a researcher from the economic group the New Zealand Initiative, Sam Warburton, claimed that the upcoming hike to petrol taxes in Auckland will adversely impact low-income households.

The New Zealand government has recently announced that it will be raising the rate of tax levied on the sale of petrol in the country by as much as NZD 0.12 per litre, and, further, the government will introduce a regional fuel tax targeted at the country’s largest city, Auckland.

In combination, the two taxes could see petrol in Auckland set consumers back by an extra NZD 0.20 per litre.

Sam Warburton explained that the financial impact of petrol excise taxes are directly tied to the amount of petr...

Read More

Pay Tax on Your Bitcoin, Says NZ IRD

April 4, 2018 Taxation in New Zealand

crypto taxWELLINGTON – New Zealand’s tax authorities want to make sure that taxpayers follow the tax rules when it comes to cryptocurrency.

On April 3rd the New Zealand Inland Revenue Department issued guidance on the taxes applicable on profits derived from digital currencies.
The guidelines come as a response to the queries sent to the IRD from taxpayers in regards to their cryptocurrency holdings.

The tax department reiterated that incomes arising from any activity to do with cryptocurrency will be liable for income taxation, even though the currency is entirely digital.

It was advised that for the purposes of taxation, cryptocurrency incomes will be deemed taxable if they provide capital gains, or if they lead to income when used in a transaction, or if they are swapped for a different crypto...

Read More

NZ Will Review Smoking Taxes

March 16, 2018 Taxation in New Zealand

taxes on smokingWELLINGTON – Taxes on cigarettes may be leading to inequality and increased rates of crime in New Zealand.

The government of New Zealand has announced that it will review the impact that taxes on tobacco have had on the country, as there are some indications that the measures have not all proven to be good.

Tobacco taxes in New Zealand have consistently risen by 10 percent in January for a number of years.

The hikes are intended to be the main pillar of the government’s smoke-free 2025 policy.

More tax hikes are already scheduled to be enacted up until 2020.

The government will now review what impact the tax hikes have had on the country, and to what extent have the hikes encouraged smokers to quit.

The review will also look at what financial impact smoking has had on smokers and socie...

Read More

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...

Read More