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Media Releases
Media Releases
This page details the Media Releases that have been recently issued by ITOC:
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Date: 22 January 2010
News Release: Friday 22 January 2010
Inbound tourism operators urge caution on GST increase
The Inbound Tour Operators Council of New Zealand (ITOC) applauds the recently released report by the Tax Working Group but urges caution before any decision is made to increase GST.
Brian Henderson, President of ITOC says “We welcome many of the suggestions made by the Tax Working Group that will create a more equitable tax system, particularly one which would require less administration for large and small businesses and enable them to compete in a global market.”
“However we have two concerns around any proposed increase in GST that we believe the government needs to take into consideration.”
“Firstly, as the only export sector that is affected by an increase in GST we ask the government to carefully consider the negative impact that an increase in prices will have on our ability to attract visitors to New Zealand. Should an increase occur it is vital that we have 18-24 months prior notice so that the new GST rate can be built into our prices and included in brochures which must be produced well in advance.“
“Secondly, inbound tour operators have been disadvantaged by recent changes made to tax legislation. This now forces New Zealand based companies to pay GST on the services they export compared to our offshore based competitors who are not required to do so, giving them an unfair price advantage. Any increase in the rate of GST will further disadvantage New Zealand based companies and may result in further business closures or relocation offshore. “
“We believe that the government should allow the tourism industry to zero rate exported services consistent with other service sectors such as accountants and lawyers who do not have to charge GST to their offshore clients,” said Mr Henderson.
ITOC Background:
The Inbound Tour Operators Council of NZ was founded in 1971. It represents 250 tour operators and suppliers throughout the country who package, distribute and market New Zealand tourism products and services internationally.
ENDS
For more information, please contact:
Brian Henderson
President
ITOC
Mob: 027 552 5877
Paul Yeo
Chief Executive
ITOC
Mob: 027 255 2549
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Enquiries to: Email: info@itoc.org.nz Fax: +64 4 499 0786; Phone: +64 4 496 4898
Enquiries to: Email: info@itoc.org.nz Fax: +64 4 499 0786; Phone: +64 4 496 4898