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Government preparing Digital Tax for online companies

USNMix Report: Government preparing for "Digital Tax" 
on online companies like Google, Facebook.

However, it is planned to be implemented from 2020, under which companies will have to pay 2 to 3 percent tax.

Government preparing Digital Tax for online companies


The New Zealand government on Monday announced plans to introduce new tax on giant online companies such as Facebook and Google. The government says that these online companies earn a lot of money in our country but they make a lot of cuts. New Zealand's Prime Minister Jacinda Ardern said that there is a big difference between income and tax, which needs to be reduced. Our current tax system is not fair enough to deal with individual taxpayers and multinational companies that are not good. "

He said that under the proposed Digital Service Tax, multinational online companies must pay about 2 to 3 percent of their earnings in New Zealand as tax. These tax rates are in line with other countries. Revenue Minister Stuart Nash said that foreign online companies have got competitive advantage over local companies. Local companies pay a large amount of tax. He said that the new tax will be applicable from next year.

The New Zealand Government estimates that multinational online companies operate about 2.7 billion new Zealand dollars (US $ 1.9 billion) in the country every year, and new tax will fetch the government eight million new dollars ($ 5.5 million) annually.

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