Government expected to move on 'Netflix tax'

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#1618535 27-Aug-2016 23:28

freitasm:
Geektastic:

Behodar: Presumably if I went to, say, Greece and called a Greek landline with Skype, I'd be charged NZ GST because it's an NZ Skype account. Where's the logic in that?

Arguably, where is the logic in GST at all? Why on earth should you pay a tax because you spent some money (on which you paid tax already) to buy something?

This is exactly what I think. I already pay tax on my monthly paycheck. Companies already pay tax on their revenue. GST is just a tax on expenses where I use money earn on already taxed income.

If GST was taken away PAYE would rise to compensate. With PAYE there is no choice with a consumption tax there is some choice.

freitasm

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#1618539 27-Aug-2016 23:32

Basically saying that what we pay on income is not enough so the government finds other ways to get money anyway... Either way the money goes out and while PAYEE is based on how much you make and can be charged in steps, GST is based on how much you spend, impacting everyone without regards.

MikeB4

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#1618540 27-Aug-2016 23:36

freitasm:
Basically saying that what we pay on income is not enough so the government finds other ways to get money anyway... Either way the money goes out and while PAYEE is based on how much you make and can be charged in steps, GST is based on how much you spend, impacting everyone without regards.

When GST was enacted PAYE was reduced . I believe consumption taxes are fairer they don't penalise for hard work and earning more.

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#1618541 27-Aug-2016 23:42

MikeB4:
freitasm:

Basically saying that what we pay on income is not enough so the government finds other ways to get money anyway... Either way the money goes out and while PAYEE is based on how much you make and can be charged in steps, GST is based on how much you spend, impacting everyone without regards.

When GST was enacted PAYE was reduced . I believe consumption taxes are fairer they don't penalise for hard work and earning more.

With GST basically even if you earn more but don't use the money then you don't contribute equally for government services, so someone else will be paying for your use?

rmt38

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#1618572 28-Aug-2016 07:35

freitasm:

This is exactly what I think. I already pay tax on my monthly paycheck. Companies already pay tax on their revenue. GST is just a tax on expenses where I use money earn on already taxed income.

When you buy fuel at the service station, on the docket, do they apply a petrol tax, and then GST on top of both the sum of the fuel price and petrol tax? I seem to recall that being the case. There you're getting triple taxed on part of your spending.

rlevis

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#1618662 28-Aug-2016 12:41

Millions of tourists also pay the tax so that's less income tax we don't have to pay.

rmt38

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#1618691 28-Aug-2016 13:56

rlevis:

Millions of tourists also pay the tax so that's less income tax we don't have to pay.

I don't think it works that way. It's more that it's more money to spend. Heaven forbid we have a government that removed taxes, or when adding new ones in new areas, reduced others to make the overall tax take the same.

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#1618710 28-Aug-2016 14:40

freitasm:
MikeB4:
freitasm:

Basically saying that what we pay on income is not enough so the government finds other ways to get money anyway... Either way the money goes out and while PAYEE is based on how much you make and can be charged in steps, GST is based on how much you spend, impacting everyone without regards.

When GST was enacted PAYE was reduced . I believe consumption taxes are fairer they don't penalise for hard work and earning more.

With GST basically even if you earn more but don't use the money then you don't contribute equally for government services, so someone else will be paying for your use?

Makes it easier to buy a house, with lower PAYE, can save more, and then when do buy house no GST on buying existing house and land.

If PAYE was higher probably be a fairer system and not as messy as things llike a Netflix tax.
At moment low pay earners are after spending money are paying around a third or more if smokes etc of their income in tax.

From memory PAYE was around 24% before GST at low income as doesn't need to be as high as government getting income as soon as it is earned, plus not losing income when people go overseas or buy houses, that money has been taxed, where with GST there is no income from that money.

To me GST seems to be an inefficient taxation method and hits people hardest who are unable to save, go overseas.
With Internet purchases GST is getting more complicated.

mattwnz

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#1618717 28-Aug-2016 14:55

Geektastic:

Behodar: Presumably if I went to, say, Greece and called a Greek landline with Skype, I'd be charged NZ GST because it's an NZ Skype account. Where's the logic in that?

Arguably, where is the logic in GST at all? Why on earth should you pay a tax because you spent some money (on which you paid tax already) to buy something?

Because they have to find fair ways of getting tax revenue. You don't pay that if you buy an existing house, which is why many people invest in houses. Most houses in NZ never had to pay GST when they were built. But you do pay GST if you buy some other forms of investment, such as investment art. It is one reason why the NZ economy is really built on housing, as housing has had many tax benefits over other forms of investing.

rmt38

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#1618748 28-Aug-2016 15:53

mattwnz:

Because they have to find fair ways of getting tax revenue. You don't pay that if you buy an existing house, which is why many people invest in houses. Most houses in NZ never had to pay GST when they were built. But you do pay GST if you buy some other forms of investment, such as investment art. It is one reason why the NZ economy is really built on housing, as housing has had many tax benefits over other forms of investing.

I and I imagine the person you responded to believe it is unfair to tax someone on the same earnings twice. Once when earnt, and once when spent.

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#1620654 1-Sep-2016 09:20

Just got an email from google about my google apps account and GST being added from 1st Oct

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#1620655 1-Sep-2016 09:23

Just got one from Adobe for Creative Cloud.

Procrastination eventually pays off.

littleheaven

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#1620768 1-Sep-2016 10:53

I've just switched my Netflix sub to New Zealand, in order that I pay GST (when it applies).

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old3eyes

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#1620816 1-Sep-2016 12:14

littleheaven:

I've just switched my Netflix sub to New Zealand, in order that I pay GST (when it applies).

Why??: Do you think that the IRD brown shirts will knock down your door if you don't??

Regards,

Old3eyes

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#1620839 1-Sep-2016 12:48

Probably because he believes that he should pay tax as part of being part of a wider society which has costs. (I agree with him). But there are other opinions available.

I am curious as to whether my amazon.uk will add the gst on top of the VAT I pay for my kindle books though. If they charge me nz GST, it means they know I am not in the uk so maybe wont add the VAT as its being exported....(I wonder if I could claim the VAT back)

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