Exclusive: More tax to be added to online purchases

Author
Barry Soper, Rosie Gordon,
Publish Date
Tue, 1 May 2018, 5:37AM
The 'Amazon tax' would add to the extra charges brought in by National's 'Netflix tax'. (Photo / Getty)

Exclusive: More tax to be added to online purchases

Author
Barry Soper, Rosie Gordon,
Publish Date
Tue, 1 May 2018, 5:37AM

GST is about to be slapped onto goods bought online.

The Government's set to announce today that GST will be applied to goods brought online from overseas companies under the value of around $400.

Newstalk ZB's political editor Barry Soper understands the Revenue Minister will make the announcement at a Wellington book store later this morning.

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The issue was to be looked at by a tax working group - but Soper says it seems to have skipped that process.

"It was being planned by the National government. This government appeared to reserve the right to introduce the tax when it felt the need to do it."

He says ultimately the public will bare the brunt of the cost.

"The GST will be paid by the companies that sends the project, but of course, the public will pay another 15 per cent on top of what they would see the item being worth on the internet."