GOODS AND SERVICES TAX ON PRIVATELY-IMPORTED GOODS.

The Goods and Services Tax Act 1985 does not require foreign suppliers to collect goods and services tax (GST). In addition, private importers are not required to pay GST unless the value of an imported consignment exceeds a de minimis threshold. Domestic retailers are crying foul; in their view, failing to levy GST on imports below the threshold makes the prices of New Zealand firms uncompetitive compared to offshore firms. This, they claim, erodes tax revenue and damages the local economy. But is the threshold really as problematic as local retailers contend? If it is problematic, are there alternatives better than the current regime? This article investigates. The article consists of three parts: the first part reviews the history and operation of GST; the second part examines the problems of a de minimis threshold; and finally, in the third part, the article considers potential options for reform. [ABSTRACT FROM AUTHOR]