Benefit for retailers in proposed GST introduction for online purchases

Waitaki news
Monday, March 23, 2015

Waitaki MP Jacqui Dean said retailers in small towns around New Zealand would benefit from the proposed introduction of GST for online purchases.

“New Zealand consumers are increasingly shopping globally, with an estimated 10 percent of all sales now made online.

“While this form of shopping is growing in popularity, retailers in small towns around the country tell me they are struggling to compete and many hold concerns about their future viability.

“I acknowledge the convenience and selection that internet shopping provides, but am also concerned that money that people could be spending in New Zealand, and in their own communities, is being spent overseas.

“It concerns me that local retailers, who are employing people and bringing money into the country and their community, are paying all of the taxes while online sellers pay none.

“Introducing GST on online purchases simply creates a level playing field for kiwi retailers, at the same time clawing back some of the revenue that our country is losing through internet shopping.”