New Zealand plans ‘Amazon Tax’ for people buying online

WELLINGTON, New Zealand — New Zealand plans to start taxing people who buy books, shoes and other small items online from abroad in a measure many people are calling the “Amazon Tax.”

Revenue Minister Stuart Nash announced Tuesday that the government plans to close a loophole allowing people to buy low-cost items from abroad without paying the 15 per cent tax imposed on goods sold in New Zealand stores. The new system would levy the same tax and must be approved by lawmakers. It would take effect from October 2019.

How to tax purchases from online companies like Amazon is a question vexing many countries. Australia plans to collect tax on low-cost items later this year while the European Union has plans to start collecting taxes by 2021.

New Zealand retailers have welcomed the plans.