Hon Peter Dunne
Minister of Revenue

MEDIA STATEMENT

Govt invites inbound tour operators' GST comment

The Government will consult with inbound tour operators over draft legislation clarifying that the facilitation fees they charge for tour packages for overseas visitors should attract GST at the standard rate of 12.5%, Revenue Minister Peter Dunne announced today.

The consultation follows on from the Government's announcement in August that it would change the law to clarify the standard GST treatment of these fees. The changes would include a transitional provision allowing operators to zero-rate the fees for the year to 1 July 2008.

"Our policy officials will send the draft legislation to inbound tour operators, which they will be able to consider over the next few weeks. They will have until the end of this month to comment," Mr Dunne said.

"As indicated to the industry, we hope to have the changes enacted by Christmas, with effect from 1 July 2008.

"To that end, we plan to add the changes to the taxation bill currently before Parliament before it reaches its final stages," he said.

"The one-year transitional provision will help minimise any adverse effects on ITOs, allowing those who did not zero-rate the fees in that year to claim refunds of GST for the period.

"We are satisfied that the changes will put to rest uncertainty and debate about the tax treatment of these fees that has gone on far too long, and we invite the industry’s comment on these matters before they are incorporated into the bill

"It is very important that ITOs have their say on the legislative detail of these important changes, to ensure that the new law works as effectively as possible," he said.

Mark Stewart - Press Secretary, Office of Hon Peter Dunne
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