Prime Minister John Key says it is inevitable the cost of online shopping will go up as GST is charged to more goods and services.
Mr Key today said the continuing growth of online shopping was considerably affecting the Government's tax-take.
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"It is not so much a matter of clawing back revenue, but base erosion - the ability to actually lose a huge amount of revenue because people are increasingly going online is something that eventually not only we need to deal with, but every country."
GST is not currently charged on imported digital products such as music and film downloaded from services including iTunes. Physical goods bought online and worth less than $400 also usually escape GST.
