New Zealand considering tax on offshore gaming operators
New Zealand will hold a general election this October, which will decide whether Labor should retain control of the government. However, if National wins a majority it will introduce major tax reforms, including new taxes on all gambling operators in the country.
National holds its main rivals responsible for mismanaging the economy, leading to rampant inflation, skyrocketing interest rates and a shrinking economy.
To solve these problems, the party proposes to impose new taxes on foreign-owned real estate and eliminate existing corporate tax incentives. The party predicts the changes could boost the economy by more than NZ$1.2 billion ($716 million).
National also wants to close iGaming loopholes. It is not currently illegal for New Zealanders to use offshore locations. However, these sites are not regulated and do not pay taxes to the state.
Under National's project, a tax on offshore gambling operators would raise NZ$179 million (US$106 million) for New Zealand.
Government Officials Reject Number
However, NZ Labor MP Kieran McAnulty claims she seriously misjudged the funding a regulated iGaming market could attract.
McAnarty, who is also the country’s racing minister, puts the figure at about half. He said New Zealanders spent about NZ$300 million ($179.13 million) on online gambling through offshore platforms.
The New Zealand Lotteries Commission and Tab NZ are the only two regulated operators in the country. If New Zealand were to regulate the iGaming industry, current offshore operators would pay at least 15% goods and services tax. If McAnulty is right, the maximum the government could receive is about NZ$50 million ($29.85 million).
Tax Advice for Foreign Buyers
National, which currently leads Labor by a wide margin in political opinion polls, believes the reforms are necessary to allow the government to focus on workers. It claims that many people will need to work multiple jobs to make up for rising inflation and high taxes.
It is claimed that changes to current tax laws will provide the average household with more disposable income. With an average of NZ$120,000 (US$71,652), the reforms will see some households receive an extra NZ$500 (US$298.55) per month.
To do this, foreigners who buy a home worth NZ$2 million ($1.19 million) or more must pay a 15% "foreign buyer's tax." National claims it will bring in additional tax revenue of NZ$740 million ($441.85 million) a year.
The party will also scrap government tax breaks for commercial property depreciation. This could generate an additional NZ$525 million ($313.47 million) in revenue for the government.
Other tax reforms are also included. National plans to introduce the reforms on July 1 next year if it achieves its goals and gets enough voter support to take over.
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Source: www.casino.org
