New Zealand’s Revenue Minister, Simon Watts, announced on 20 May 2025 that the government has decided to scrap the Digital Services Tax Bill from the legislative programme.

The Digital Services Tax Bill was introduced in 2023 by the previous Government.

“We have been monitoring international developments and have decided not to progress the Digital Services Tax Bill at this time. A global solution has always been our preferred option, and we have been encouraged by the recent commitment of countries to the OECD work in this area,” said Watts.

“New Zealand has long supported and benefited from collective action and the global rules-based system. By focusing on a global solution, it will enable an agreed-upon, consistent outcome across participating countries.”