22 Nov 2010

Retailers' GST call for overseas purchases 'impractical'

4:19 pm on 22 November 2010

A retailers group is calling for GST to be paid on online purchases from overseas to help protect local businesses, but an IT commentator says it would be impractical to collect the tax.

The Retailers Association is calling for GST to be paid to help protect New Zealand businesses.

The 15% tax is not levied on items bought from abroad that are valued at less than $400.

Ben Gracewood says overseas buyers would have to provide information to the Inland Revenue Department for the proposal to work.

Mr Gracewood says policing such a scheme would be impossible.

Retailers Association chief executive John Albertson says it is impossible to know just how much is spent overseas but he believes it would be considerable.

He says retailers want is a level playing field that is fair for everyone.

Mr Albertson says an efficient, cost-effective way would need to be found to collect the GST, and believed technology is available to make such a system work.