New Zealand opposition party plots to raise NZ$180m from offshore operator tax plan
The National Party looks to crackdown on online firms not based in country ahead of October’s general election
New Zealand’s main opposition party has proposed to raise NZ$179m per year by closing tax loopholes for offshore operators in the market.
The centre-right National Party, which has been out of power since 2017, detailed the measure as part of its package of tax reforms ahead of the country’s general election in October.
The policy document, ‘National’s Back Pocket Boost’, was released on 30 August and included a raft of measures, including the clampdown on offshore gambling operators.
The document stated: “Offshore online casino gambling services currently benefit from a loophole where they are not required to register their earnings in New Zealand for tax purposes.
“Where domestic casino operators are required to pay goods and services tax, company tax and other levies, offshore operators serving New Zealand customers are able to dodge these obligations.”
The National Party said it would establish a regulatory regime for online casino gambling to ensure offshore operators pay their fair share.
The opposition also claimed it would require these operators to register and report earnings for tax purposes.
As it stands, only TAB NZ and national lottery operator Lotto are able to provide services to New Zealanders.
However, New Zealanders are able to bet with offshore operators.
Labour’s minister for racing, Kiernan McAnulty, responded to the National Party’s proposed policy, slamming it for overinflating revenue income.
He said: “It’s no where near as much as they say it’s going to be. Our figures say it would be around NZ$40m to NZ$50m. Their figure of $180 million a year from tax just doesn’t add up. There’s work underway at the moment to regulate the overseas gambling industry.”
The National Party used strategic advisor Castalia to forecast potential income from closing the loophole.
The manifesto also includes shifting tax brackets to support New Zealand’s middle class, as well as saving NZ$740m by introducing a 15% foreign buyer tax on houses worth more than NZ$2m.