Commerce minister andrew bayly will soon get advice on dropping new zealand's few remaining tariffs, allowing vastly more goods to enter the country without paying a fee. …
These tariffs earned the government $180 million last year, meaning that getting rid of them would cost the Government roughly that amount of money.
However, the BIM said the cost to the total economy was greater than what the Government earned in revenue.
“Costs include the administrative costs for government in maintaining the system and compliance costs for businesses in demonstrating that their imported goods come from a country that qualifies for lower tariffs under a Free Trade Agreement. A recent study estimated these add another $90-260 million in costs to consumers, businesses, and government,” the BIM said.
Tariffs are a tax on imports. They are bad for consumers and also bad for producers and manufacturers as they encourage investment in areas where we do not have a competitive advantage.
It would be great if the Government announced in their first budget, that all of them will go.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.
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