The retailers are whining again about people shopping overseas and not paying GST, claiming it is not an even playing field and retailers are seriously disadvantaged. What a load of cobblers.
In the first instance, I pay GST on everything I import over the value of $400.
Now let's look at the reality of the situation Mr and Mrs Retailer. Bring your prices down to a level that matches who we buy from overseas and we will buy from you.
I import shoes from the USA at $70 a pair including freight. I will be happy to pay GST on $70 rather than pay some greedy retailer in NZ nearly $300 for exactly the same shoe. I hardly buy anything in NZ now as it is all far too expensive.
When I built my last house the framing from Australia, and NZ wood to boot, cost me $35,000 as against in NZ $75,000. I bought all the doors from Australia at $40 a door; here $80 a door. I bought the bricks from Australia at a total cost of $6000; here $12,000. All those prices included freight. So NZ retailers, get your act together, sharpen your pencils and be happy with a reasonable profit then Kiwis will start shopping with you again.
A Bourne, Bethlehem.
2 comments
tax exempt businesses
Posted on 17-11-2017 11:40 | By Captain Sensible
Strange how some businesses pay tax but a maori 'business', like GoBus, is exempt from tax. How can a NZ company compete against a NZ business exempt from tax?
Buying in NZ...........
Posted on 17-11-2017 18:29 | By groutby
... I agree with the writer regarding retail costs here, and add that it is noticeable that we have little choice of items still to buy, at any price...and that's why I buy offshore. I have sympathy for retailers to an extent in that our overall market is so small it is often not possible to import small amounts of "everything" at a reasonable cost, and when it sells the buyers are maybe few and far between maybe making it necessary to 'ramp up' prices to be able to keep their doors open. Shoppers are much more savvy now though, and are price driven more than loyalty to a particular business as in the past. Quality of service seems to be in decline also, making no 'face to face' contact quite appealing for many. As for GST on all imports?..another upcoming TAX by the new government..no advantage to retailers..
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