Netflix might receive a bad news from New Zealand that Oceania’s regulators are planning to tax digital products, reports Netflix news. New Zealand’s government would present a document to find out ways to tax offshore e-selling, music and television, which is currently costing $180,000,000 to the country’s economy per annum, as these services are not being taxed.
The tax-friendly official paper would be divided into two parts; the first including service, such as the Californian organization’s streaming video and Apple’s iTunes, while the second part comprises of tax on imported goods. Netflix news today disclosed that a large part of the legal paper would be made up of the service’s component and could be placed by the latter part of this year.
New Zealand’s Prime minister, John Key, has stated that in terms of dealing with the goods moving across the border, it is challenging, but he believed in the possibility. He added that the government is attempting to ensure its acts fairly to existing retailers with brick and mortar on the ground and the fact that increase in electronic purchasing has created a hole in government’s revenue accounts. However, it focuses on the fact that consumers are interested in online purchases.
Netflix breaking news affirmed that local sellers have been striving to deal with the increased demands for online purchases, which avoid general sales tax on all goods and service that are sold for a price lower than $400. The officials of New Zealand are collaborating with their Australian counterparts to find out ways to tax imported products. It is probable that the cabinet would get a series of suggestions on the concerned part of the document by late October.
Official sources have informed that if the new tax is imposed, then the nation’s residents would have to pay for iTunes songs that are known for costing as little as $1.50. The government believes that the same principle should be followed regardless of the cost of the product.
The limit for paying tax could fall in between $20 or zero, similar to what Australian authorities were considering. This tax would play a significant role in redefining the relationship between New Zealand’s authorities and the North American company. If the tax is imposed, then Netflix’s officials should ensure the payment of tax; otherwise, it might suffer in the region. This imposes obligations on the company as well, as it will be responsible for the collection of tax.