WILLING TON: The cost for travellers to enter New Zealand is set to drop as plans to decrease the border travel levy is due to go ahead from July 2018. The tax, known as the Border Clearance Levy, was introduced in 2016 to fund New Zealand’s customs service and the Ministry for Primary Industries border services. New Zealand’s Labour Party at the time said the introduction of the levy wouldn’t negatively impact the economy but actually generate revenue to support and fix issues in the industry. It’s reported that the levy will have generated $21.1 millions worth of funds by the end of June. At the time of the introduction, it was hoped the tax would raise $75 million. Currently the travel levy is $20AUD (NZ$21.57) for international airline passengers or $24AUD (NZ$26.22) for cruise passengers and will be reduced to $17AUD ($NZ18.73) for travellers via plane and $20AUD (NZ$22.82) for cruisers.
While tourism bodies agree with the change to the levy, they reportedly would have preferred to be part of the consultation process. Tourism Industry Aotearoa chief executive Chris Roberts agrees with the reduced levy, saying it was an expected change. The boom in inward and outbound travel means the levy has raised far more than was anticipated. We raised the issue of the large over-accumulation in our brief to the Minister of Tourism and called for the levy to be decreased.
