Comment Re:Seems unfair to me (Score 1) 203
Here in New Zealand, any consignment which would attract a GST tax of less than NZ$50 is not taxed because collection costs would exceed the $50 to be collected.
However, when GST was recently increased from 12.5% to 15%, they also added an extra fee so that if your package does attract $50 or more of GST, you're also hit with about (from memory) another $28 or so as a "biosecurity fee" or something similar.
How on earth they deduce that only goods that have $50 or more of GST payable might represent a threat to our biosecurity I have no idea -- this is simply a cash-grab.
Of course with teh Chinese issuing fake (grossly undervalued) invoices left, right and center, there's no easy way for Customs to apply these taxes at the border so most stuff comes in tax-free, regardless of its value.
I have had friends who've imported $1,000 RC model aircraft that are 30% of full size. These arrive in *huge* boxes and include the 55cc engine. It has to be obvious that this stuff is worth *far* more than the $125 declared on the box - but it comes through without any GST being demanded.
When I wrote a column about this very subject last year it was suggested that the government simply add GST to all overseas credit-card transactions. Of course even that won't work -- because it would mean that those on holiday overseas would be paying tax on goods and services that came nowhere near our country's borders and would thus be patently unfair.
No easy way to solve this issue so let's just ditch the concept of duties and sales-taxes so everyone can enjoy the global shopping that is now available via the internet.