The #eFairnessNZ campaign says it wants to level the playing field between imported goods and those bought domestically by New Zealand consumers.
Because it costs more to collect the tax on lower valued goods than the tax revenues are worth, GST is not charged on imported products valued at less than $400. Domestic retailers argue that the consequent 15 percent price difference between foreign and domestic prices is decimating local retail.
People are apparently willing to wait days or often weeks, and pay often substantial shipping charges, just to save $30 GST on a $200 purchase.
Let’s turn it around then. Is it fair to demand that New Zealand consumers’ purchases be held up at the border to collect a few dollars in tax?
Retail News reports the #eFairnessNZ campaign demands that “Goods worth more than $25 should be levied to cover the cost of customs and biosecurity clearance, as happens in most other countries.”
Customs clearance costs are pretty low, though, unless we insist on collecting GST on goods worth $25 at the border. Current Import Entry Transaction Fees are just over $29, and the biosecurity levy is just over $17.
Is it really ‘closing a loophole’ to levy $29 in customs clearance costs at the border on a $25 item to collect $3.75 in GST?
That the #eFairnessNZ campaigners believe this to be a fair regime for New Zealand consumers suggests that their view of fairness might just differ from mine, and perhaps from yours as well.
That regime isn’t a level playing field, it’s old-style protectionism in new ‘fairness’ garb.
And I doubt that Kiwi consumers, who’ve had a taste of the range and prices of goods available abroad, will buy it.