Proposed Google, Facebook tax expected to level playing field for media companies

Author
Newstalk ZB,
Section
Audio,
Publish Date
Tuesday, 19 February 2019, 6:56a.m.
Prime Minister Jacinda Ardern.

A proposed tax on multi-nationals like Google and Facebook is expected to level the playing field for local media companies.

Prime Minister Jacinda Ardern yesterday said Cabinet had begun updating New Zealand's tax system in a bid to make sure multinational companies paid "their fair share of tax" in New Zealand.

Although details are limited, the Government's plan includes a 2-3 per cent tax on the revenue of multinational digital giants.

This is expected to bring in between $30-$80 million a year for the Government, depending on the tax's design.

Consulting tax expert Terry Baucher told Kate Hawkesby Google and Facebook are taking advertising away from local businesses. 

"Who effectively are struggling on a competition basis, that's one of the reasons why it's unfair from a media perspective."

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