Budget 2015: Tax foreign websites, says retailer

Papillon Boutique owner Dale Cooley says she wants to see GST introduced on imported goods in this week's Budget. Photo / Supplied

A Havelock North retailer is hoping this year's Budget will add GST to imported goods to ease competition with foreign websites.

Dale Cooley owns Papillon Boutique, which sells high-end New Zealand clothing.

She said there was only one thing on her wishlist for this week's Budget, which will be unveiled by Finance Minister Bill English tomorrow - a GST on all products shipped into New Zealand from overseas websites.

"My biggest thing is GST on all imports - any online sale coming into this country should be charged GST," she said.

Consumers currently pay no GST on imported goods under $400, which can make foreign websites appear the cheaper buying option when compared with local stores.

"It just puts us on a level playing field," Ms Cooley said of the proposed tax. "It allows us to compete fairly. If we're selling a like good, and to buy it overseas you have to add 15 per cent, then it wouldn't seem as cheap."

The concept had garnered a groundswell of support from New Zealand retailers, and had been pinned with the hashtag "#efairnessnz".

"It's something that has been talked about, the New Zealand Retail Association are backing it, and it was something that was mentioned by the Government as possibly being in the budget."

She said the retail environment was "still tough," but improving slowly.