24 Apr 2012

GST rules for foreign firms to change

8:56 am on 24 April 2012

A tax practitioner says plans to remove GST impediments for foreign firms will make New Zealand manufacturers more competitive on the world stage.

On Monday, Revenue Minister Peter Dunne announced plans to make it easier for foreign businesses to register for GST and to claim GST deductions.

And for local manufacturers, Mr Dunne is proposing to remove GST on tools required to produce specific products for foreign firms.

A GST partner at PriceWaterhouseCoopers, Eugen Trombitas, says it gives New Zealand manufacturers a competitive advantage on the world stage.

"They can now compete for work and shave the 15% off their prices because they will no longer have to account for that to Inland Revenue. It will attract a whole bunch more work into New Zealand."

Mr Trombitas says the Government should accelerate this process.