Customs collects more than $17.5 billion for New Zealand in the past year
01.57pm 26 October 2022 | News
Customs collected $17.5 billion in revenue on behalf of the Crown in the year to 30 June 2022. This is up 17 per cent, or just over $2.5 billion, on the previous 12-month period.
Each year Customs collects approximately 16 per cent of core Crown tax revenue, including customs and excise duties on alcohol, tobacco, and fuel, and tariff charges, as well as GST on imported products over $1,000. Customs also collects various other levies at the border on behalf of government agencies.
Craig Chitty, Group Manager of Revenue and Assurance, says that this increase has been caused by a number of factors.
“Ongoing supply chain disruption and increased freight costs has meant many businesses are placing larger orders for their products from overseas, rather than operating a ‘Just-in-Time’ model, which impacts the amount of GST collected.
“The cost of goods has also increased in most countries due to inflation and freight costs, which will increase the amount of GST collected.
Customs put in place a number of measures to help businesses manage pressures from COVID-19 pandemic and supply chain disruption, to mitigate financial and cash flow difficulties.
“The revenue we collect is important for New Zealand’s economic wellbeing and pays for vital public services. Customs works hard to help and support businesses to ensure they can meet their obligations. We have been able to assist hundreds of businesses to work through some of the supply chain challenges,” said Mr Chitty.
“Last year we increased credit limits for many small to medium enterprises, so they could manage their cash flow during these unsettled times and more easily import larger or more frequent shipments.”
Customs has also assisted duty payers who are feeling the pressure following the pandemic through instalment payment plans and a refunds and remissions period for compensatory interest and late payment penalties.
Additionally, Customs provides a well-utilised deferral of payments scheme, which allows clients to defer their payment of Customs charges including duties and GST.
“Increasing credit limits has given businesses more breathing room with their cash flow, allowing them to pay for the essentials like employee salaries that keep enterprise afloat and the economy thriving,” Mr Chitty said.
Customs also remains focused on identifying and addressing revenue and duty evasion, and managing risks to the integrity and security of New Zealand’s supply chain security that are posed by Transnational Organised Crime.
Full revenue figures are published in Customs Annual Report.