Taxpayers’ Union warns against Digital Services Tax

Responding to the Government’s plans to implement Labour’s proposed Digital Services Tax (DST), Taxpayers’ Union Campaigns Manager, Connor Molloy, warns against the move:

“The Government should be cutting wasteful spending, not introducing new taxes that will see New Zealand businesses slapped with devastating retaliatory tariffs as seen in France.

“Introducing this new tax undermines New Zealand’s moral authority to argue against retaliatory protectionist measures from our trading partners with policies that, while neutral on paper, would go against the spirit of free trade through a structure that largely targets foreign firms.

“The proposals also risk raising prices for New Zealand consumers of digital services or seeing a reduction in the quality or quantity of services available as overseas companies direct their efforts elsewhere.

“With the economic costs of retaliatory tariffs likely to be higher than any increase in tax revenue, the government would be actively making New Zealanders poorer for very little gain.

"Revenue Minister Simon must send this proposal to the scrap heap and instead focus his efforts on cutting wasteful spending – especially in his Climate Change portfolio where it is so prevalent.”