The Government is set to announce further measures today to collect 15 per cent GST on low-value goods bought by Kiwis online from overseas, a so-called "Amazon tax."
The tax will be on anything under $400. Anything above $400 already attracts duties.
It follows on from the "Netflix tax" which started in October 2016 and which required foreign providers to levy GST on digital services sold to New Zealanders including Netflix, Spotify, iTunes, Kindle, online games and software.
In November, Revenue Minister Stuart Nash promised further action, saying that leaving out low-value physical goods gave an unfair advantage to overseas sellers compared with New Zealand sellers.
A retail leader says the move should have been taken a long time ago.
First Retail Group managing director Chris Wilkinson told Kate Hawkesby local retailers have faced an uneven playing field for far too long.
"The reality is every other country has been able to achieve it. New Zealand has really been slow off the mark in doing things."
However, local retailers aren't expecting the change to spark a bricks and mortar retail revival.
Wilkinson says it's just about creating a more level playing field.
"We're under no misapprehension this may make a major difference in terms of people's online spending, hopefully just prioritising more here in New Zealand."
LISTEN TO CHRIS WILKINSON TALK WITH KATE HAWKESBY ABOVE