Local retailers warned over latest GST announcement
A warning retailers have to be careful what they wished for because of the devil in the detail in the latest GST announcement.
2 May 2018
From October next year goods under 400 dollars will be subject to GST for businesses that supply more than 60 thousand dollars worth of products to New Zealand.
Tax Director at Staples Rodway Andrew Dickeson says the move also includes removal of tariffs and cost recovery charges.
He gave Larry Williams an example of local retailers competing against a jacket currently costing 365 dollars.
Mr Dickeson says because they are going to take those extra charges away and simply impose GST the price on that jacket now drops to 287 dollars.
He says it's actually making it worse for a New Zealand retailer not better.
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