Category Taxation in New Zealand

Don’t Over Tax Vapes, Says NZ Advocacy Group

May 14, 2018 Taxation in New Zealand

tobacco taxationWELLINGTON – As more people stop smoking, the government of New Zealand has to be careful not to discourage cessation through over taxation.

The New Zealand advocacy group, the Taxpayers’ Union, is calling on the government to ensure that it does not resort to taxing tobacco alternatives such as vapes or HEETS.

It has been estimated that the growing popularity of tobacco alternatives in New Zealand will lead to a tax gap of NZD 1.8 billion, as fewer people purchase cigarettes and loose tobacco.

Introducing a tax on vape liquids and similar products could reduce the incentive for smokers to choose healthier options, and “would perpetuate a major cause of financial harm for some of the poorest New Zealanders.”

The Taxpayers’ Union spokesman Louis Houlbrooke said that “some lost tax re...

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New Zealanders Want More Taxes

May 10, 2018 Taxation in New Zealand

Taxes in New ZealandWELLINGTON – New Zealanders want more public service, and they are not afraid to tax more people to get them.

On May 10th the largest union in New Zealand, the Council of Trade Unions (CTU), issued a press release regarding the results of their recently commissioned poll and their subsequent submission to the government appointed Tax Working Group.

The Tax Working Group was formed by the new Labour-led government to determine what new tax measures New Zealand should implement into the future.

The recommendations of the Group will form the basis of the Labour Party’s campaign platform into the next election.

According to the CTU, New Zealanders are supportive of new taxes being levied in order to fund more public services in the country.

The survey indicated that approximately 65 percent...

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Tax Freedom Day Arrives in New Zealand

May 7, 2018 Taxation in New Zealand

tax freedom dayWELLINGTON – New Zealanders now have 239 to earn all the tax-free money they can for the year.

Today, May 5th, is the day that New Zealanders will have earned enough to pay their annual tax bills, and can start working for themselves.

The date of Tax Freedom Day was calculated by the accounting firm Staples Rodway.

Tax Freedom Day is a theoretical measure used to compare the tax obligations owed in a country year to year, and the tax obligations between countries.

The measure is a convenient measure, as it takes into account the total tax burden faced by taxpayers, even as tax rules change or new taxes are introduced.

The date is calculated by comparing the total GDP of a country, against the total tax take for the government.

In New Zealand in 2018, the date of Tax Freedom Day came a...

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Amazon Tax to Launch in New Zealand

May 1, 2018 Taxation in New Zealand

Amazon taxWELLINGTON – Small and cheap goods bought by New Zealanders online will soon be 15 percent more expensive, as the government announces the launch of an “Amazon tax”.

On May 1st the government of New Zealand announced that overseas firms selling goods to New Zealanders online will soon be liable to pay GST on all sales made to locals.

Currently, New Zealand levies a GST of 15 percent on the sale of all goods and services, whether online or in a physical store.

However, up to now, GST was simply not collected on the sale of goods with a purchase price of less than NZD 400, as the cost of compliance would be too high.

The government has now stated that any overseas firm making in excess of NZD 60 000 in sales to New Zealanders each year would be required to register for GST in New Zealand, ...

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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...

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