5 Jan 2011

Retailers back Australian call for online shopping tax

8:33 pm on 5 January 2011

The New Zealand Retailers Association says people who buy products online from overseas websites should have to pay GST in order to make the system fair for shops based in this country.

Big retailers in Australia want the federal government to change the current tax system, where GST is imposed only on goods bought from international websites for more than $A1000.

The group of more than 20 includes Myer, David Jones, Harvey Norman and Target. The ABC reports they want GST applied to all online purchases.

In New Zealand, the 15% Goods and Services Tax must be paid on such purchases over $400.

The Retailers Association says some people take advantage of the rules by importing goods at a cheaper price and then selling them for commercial gain.

It is making submissions to a New Zealand Customs discussion document on the matter.

The Australian Government says it will not be swayed by the campaign.

It says it is waiting for an inquiry by the Productivity Commission into the future of retailing.