New Zealand: National Party wants to tax offshore online gambling
Date: 2023-08-30 Author: Kirill Zagoruyko Categories: EVENTS
Intense competition is expected ahead of New Zealand's general election scheduled for October. Amid fears of rising inflation, high taxes and high interest rates, the National Party and the Labor Party are expected to clash, but who will emerge victorious remains to be seen. On Wednesday this week, the National Party revealed details of a sweeping tax reform and reiterated its plans to implement it if it wins the upcoming elections, according to a report published by the Otago Daily Times.
One of the major changes included in the National reform is the taxation of offshore online gambling. Currently, TAB NZ, as well as the New Zealand Lottery Commissions, are the only regulated gambling options available to customers in New Zealand. Despite this, gambling through offshore online operators is not illegal under existing regulations. However, given that offshore online gambling sites are not regulated, this means that they do not pay taxes. By making changes to taxation, the National Party aims to bridge this gap and generate millions in tax revenue from online gambling.
In addition, the party has hinted at plans to introduce a 15% tax applicable to foreign home buyers. However, under the proposed change, this tax would apply to properties over A$2 million (US$1.3 million).
Balanced and reasonable tax plan
Announcing the new tax policy, Christopher Luxon, leader of the National, said: "This plan confirms that the national government can do what we've been told all along that we would do, which is to put money in the back pockets of New Zealanders as part of a reasonable, fully funded and balanced tax plan.”
The new tax plan, called Back Pocket Boost, undoubtedly represents an important change in the taxation model in the country. Nicola Willis, a financial spokesman, said the tax plan aims to reduce pressure on inflation while eliminating the need for borrowing. “It was designed with self-financing in mind so that National could guarantee tax breaks for working people even if Labor left the government books in a mess, as predicted,” she explained.
If the National Party wins the upcoming elections, it will focus on an annual increase in education funding, Willis said. In addition, she said that the party is committed to increasing funding for an advanced healthcare system. Willis criticized the Labor government for "an enormous amount of public spending". In addition to spending, she expressed concern about the current situation where people are forced to pay higher taxes and costs related to food, rent and gasoline, among other rising costs.
One of the major changes included in the National reform is the taxation of offshore online gambling. Currently, TAB NZ, as well as the New Zealand Lottery Commissions, are the only regulated gambling options available to customers in New Zealand. Despite this, gambling through offshore online operators is not illegal under existing regulations. However, given that offshore online gambling sites are not regulated, this means that they do not pay taxes. By making changes to taxation, the National Party aims to bridge this gap and generate millions in tax revenue from online gambling.
In addition, the party has hinted at plans to introduce a 15% tax applicable to foreign home buyers. However, under the proposed change, this tax would apply to properties over A$2 million (US$1.3 million).
Balanced and reasonable tax plan
Announcing the new tax policy, Christopher Luxon, leader of the National, said: "This plan confirms that the national government can do what we've been told all along that we would do, which is to put money in the back pockets of New Zealanders as part of a reasonable, fully funded and balanced tax plan.”
The new tax plan, called Back Pocket Boost, undoubtedly represents an important change in the taxation model in the country. Nicola Willis, a financial spokesman, said the tax plan aims to reduce pressure on inflation while eliminating the need for borrowing. “It was designed with self-financing in mind so that National could guarantee tax breaks for working people even if Labor left the government books in a mess, as predicted,” she explained.
If the National Party wins the upcoming elections, it will focus on an annual increase in education funding, Willis said. In addition, she said that the party is committed to increasing funding for an advanced healthcare system. Willis criticized the Labor government for "an enormous amount of public spending". In addition to spending, she expressed concern about the current situation where people are forced to pay higher taxes and costs related to food, rent and gasoline, among other rising costs.
