Experts say looking at a digital services tax is wise, but the government should stay cautious.
It's laid out plans to tax digital companies like Facebook, AirBnb and Uber, who do business here but don't pay any tax.
It's estimated it could bring in up to $80 million in revenue.
PWC tax partner Geoff Nightingale told Heather du Plessis-Allan there's a risk the digital companies will pass the price on to the consumer.
"We're only a small trade exposed nation, and if we start taxing people's gross revenues, if our other countries take that and start taxing our export revenues, that could hurt us more than we gain."
He says that we may be jumping the gun on this story, as the OECD hopes to have a final view on the issue by the end of next year which could be contrary to what New Zealand does.Â
"The countries are massively divided on this, and the key players like China and the US, who own most of the digital businesses, they are reasonably opposed at the moment."
Prime Minister Jacinda Ardern doesn't accept taxing these companies will end up costing consumers more.
She told media in her post-Cabinet press conference that the matter is a question of fairness, and asks why should motel owners pay tax - and not Airbnb?
"If the idea is that a company shouldn't pay tax because that may end up increasing the price of a good, we don't apply that logic to any other part of our taxation system."Â
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