NZ Bed tax makes no sense.
The Tourism Industry Association in NZ says that the proposed NZ bed tax makes no sense with some Wellington businesses potentially end up paying more than Aucklanders toward a new stadium if the Government pushes ahead with the bed tax.
The Association is opposed to the idea of the bed and airport taxes, which are being introduced to help pay for the Auckland stadium, with the Association asking the Government to clarify what the charges would actually cost New Zealanders.
The Government has proposed Aucklanders would contribute $50 million between 2007 and 2011 toward a stadium and the Association calculates that will cost individual ratepayers $182 a year for five years, and businesses $384 a year.
However, this is where it gets a little crazy – a $10 a night bed tax would mean a Wellington company paying for 50 nights accommodation in Auckland would pay $500 a year to the stadium and based on departure statistics from Statistics New Zealand, a $10 airport departure tax would mean New Zealand residents would contribute $13.6 million a year.
Association CEO Fiona Luhrs said, “The Government should make clear the implications of these proposals on all New Zealanders, given that nearly 60% of Auckland bed nights are paid for by New Zealanders and 44% of all departures from Auckland International Airport are New Zealanders”.
Business New Zealand chief executive Phil O’Reilly said a tourist tax was “illogical”, targeting those who would get little benefit from the stadium.
Report by The Mole
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