Remember how we’ve told you about rip-off prices in New Zealand, and how more and more people are finding it cheaper to buy from abroad?
Never let it be said that New Zealand has a free market economy, nor that its residents aren’t bled dry by pricing policies that exploit the limited opportunities for price competitiveness in the country.
Now New Zealand’s finance minister is castigating mom and pop for buying from Amazon rather than pay inflated prices at home. How darned unpatriotic of them! Heck, they’re costing him more in lost revenue than the tax turnover of those ‘international corporates’ (code for Australian banks, and for Google and Facebook who are grabbing advertising money that noble NZ media companies could be soaking up).
In a statement by Stuff.co.nz that reeked of xenophobia
The problem was not “nasty foreigners”, but New Zealanders shopping online that was eroding the tax base.
“The most urgent issue is not the big end of town, it’s the small end of town – hardworking Mums and Dads … buying from Amazon,” English said.
There were also issues of whether New Zealand had jurisdiction.
“We are not moving to turnover taxes. … if it was simple we would have done it.”
Earlier, English announced that May 15 will be the day he delivers the National-led Government’s sixth Budget…”
New Zealand is already getting its pound of flesh from mom and pop by imposing import duties on their Amazon purchases.
Perhaps Mr English should think on this.
Is New Zealand a free market economy of not? If it is, leave the market to find its price and leave mom and pop alone to do their thing. Do not tax their remaining pleasures out of existence because Facebook isn’t paying its fair share.
Why does the government not have the confidence or competence to take on the big players, and why should mom and pop vote for them when its so obvious where their loyalties lie?
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“Just when you thought a solution to NZ’s ripoff prices is to buy from abroad, new fees are being introduced this month to make even that less attractive.
Consumer.org has showcased the new Import Transaction Fee which they say is likely to apply to personal imports of goods like books, jewellery, clothing, toys and electrical appliances. They say that the NZ Customs Service will be applying an additional fee of $24.75 ($22 plus GST) to a range of personal imports that attract GST and import duty.
Mostly it will apply to goods over $400 in value but there will be occasions on which packages valued at less than $400 will attract the fee.
And it that’s not bad enough MAF are also going to take their cut by imposing a MAF Biosecurity system entry levy of $12.50 (including GST) whenever an Import Transaction Fee is applied…”
“The above quote is taken from a New Zealand Herald article in which Auckland shop keepers allege their falling revenue is due to consumers exercising free choice and buying goods overseas.
New Zealand used to have a free market economy, but if local shop keeps get their way the government will add 15% sales tax to EVERY overseas purchase no matter how small.
Whilst the rest of the developed world moves towards an e-economy and reaps the benefits New Zealand businesses want their country to remain in the Stone Age, so that they can continue to reap the rewards of a restricted market.
However, even with the addition of 15% tax many of these products will still be significantly cheaper overseas than they are in New Zealand. Many of these items aren’t even luxury goods, just items that cannot be bought locally…”
Migrant Tales – Goodbye New Zealand (Oct 2013)
“…Some of the things missed but maybe listed elsewhere – portable gas heaters which make amazing wallpaper strippers, rip-off businesses where the importer in Oz marks up by 100% before AKL importer marks up by 100%, then local distributor marks up by 100% then shop marks up by 100%++…”
“That was the advice of the UK’s Daily Mail based on the latest holiday money report from the Post Office…”
“Shame on the pharmacists of New Zealand who over charge sick tourists during holiday periods.
New Zealand’s pharmacy prices are already among the highest in the OECD with a wholesale mark up of 10% over the manufacturer’s price plus the pharmacy’s mark up (in the USA the wholesale mark up is around 2-4 %). But that doesn’t stop unscrupulous owners from over charging visitors who need essential medications.
One chemist in a holiday area was charging an additional $10 per prescription, supposedly to cover staff holiday pay rates, on Boxing Day. In parallels to a famous Dickensian tale, the medication was to treat a small boy’s leg infection…”
“NZ: 100% Pure Rip-Off” (July 2010)
Ministerial Credit Card Rort (June 2010)
Immigrants Caught In Cold Poverty Trap (July 2010)