ajobbins: If they want to collect revenue, they would be better off stopping some of the white collar tax evasion. Or bringing in a CGT.
It is ridiculous that the government is even entertaining the idea. When an individual can import something significantly cheaper than a retailer that is importing in bulk then that tells you we're getting ripped off!
It will be too costly to even thing about applying to minor dollar value items.
Bung: Isn't this similar to the US experience where the Senate are considering law to force the likes of Amazon to charge the sales tax appropriate to the State the purchaser lives in.
gregmcc: to me this whole idea sounds like a diversionary tactic, there is some other issue that they really don't wont blocked by bad press (such as the GCSB bill) so they bring out some other looney idea like this GST levy on overseas purchases, all the bad press get focused on that and in due course they back down saying it's impracticable and everyone is happy it didn't happen....meanwhile this other very important bill that the press has forgotten about is all but a done deal
sbiddle:mattwnz: It is interesting to read some of the comments on this on that article. GST actually applies toall imported goods, it is just that items under $400 isn't worth collecting in terms of time and cost involved. I do however see it being a problem, and it does mean that taxpayers do miss out on this extra revenue. It also means that local retailers are at a disadvantage. Maybe the whole GST thing on retail goods needs to be looked at, so local retailers aren't at a disadvantage.
Australia has a $1000 limit and has decided after several reviews in recent years that the cost of collecting revenue for purchases under this will cost more than the revenue gained.
You also need to look at this issue and the reason for it - is it to collect tax or protect retailers? If it's to collect tax the costs of processing a few million extra packages a year needs to be factored in. If it's to protect retailers they need to decide if something bring in a product that will now incur GST but still be cheaper than buying it locally will actually benefit retailers in any way.
Customs Minister Maurice Williamson says it would be virtually impossible to charge GST on items being bought online, an idea currently being explored by government official.
"Because I've got a technology background I think ... it's just about going to be impossible to do," he told Radio New Zealand.