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Meanwhile you can import into NZ for the price of the standard GST, 15% tax on all goods. Type approval not an issue if approved in US/EU/Japan etc. As a resul
by lancewiggs 14y ago
Meanwhile you can import into NZ for the price of the standard GST, 15% tax on all goods. Type approval not an issue if approved in US/EU/Japan etc.
As a result only 64000 of the 150000 cars imported in 2011 were dealer new. The rest were 2nd hand, 95% from Japan. The money saved to the economy is staggering.
Australia's import barriers add huge economic deadweight loss to their economy. (I.e. they waste money)
- brc 14y agoI was going to add that NZ dumped the idea of a local car industry in the 1980s and relaxed its car import laws. As a result the average car age is much lower, and the average cost of a car is much lower - leaving large amounts of disposable income for NZ residents to spend on other things (ie, not Dealer/Manufacturer profit margins + Federal taxes). As you have shown - when people can import a vehicle from anywhere they like, they do, and no doubt that puts serious pressure on dealer + manufacturer margins and there would be very little price gouging going on. You should hear Toyota Australia go on about parallell imports - they condemn the cars as unsafe - despite those cars being built in Toyota factories in Japan. It is mind boggling. Meanwhile, the last round of Federal Government 'assistance' (or co-investment, as they now spin it) that was given to GM was mostly used for redundancy payouts for factory staff. Support for the regulation + taxation + duty protection for the Australian car industry has bipartisan support - so it's not likely to go anywhere any time soon.