The Government wants more time to consider other ways to collect tax on low-value imports, often ordered online.

Retailers say they are "deeply disappointed" that the Government has parked a decision on lowering the $400 threshold for GST for most imported goods.

Customs Minister Nicky Wagner has said her department would instead look into different ways of collecting tax effectively for low-value imports, before proposing to lower the threshold, possibly halving it to $200.

She said Customs would report back in April next year, with a possible mechanism in place by 2018 or 2019.

Currently Customs does not collect GST or duty on goods if the amount totals less than $60. That means most non-digital items worth less than $400 can be imported from overseas GST-free – or about $225 on goods from countries where there is no free trade agreement..

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But as more and more New Zealanders buy goods on overseas websites, low-value imports has been rising in volume by about 14 per cent a year, and expected to double over the next five years.

Domestic retailers argue they face an uneven playing field against their overseas rivals because they must pay duty and GST on shipments.

"The reality is that small firms in small town New Zealand are collecting tax for the Government, while massive international retailers like Amazon, Asos and Ali Baba are getting away without paying their fair share of taxes," Retail NZ's general manager Greg Harford said.

Wagner agreed the current $60 threshold benefited online buyers and was unfair on local retailers, but said there was no quick or easy solution.

Customs needed more time to look what some of the collection mechanism options could look like and what the border transaction fees might be, she said.

"By lowering the threshold too soon, there is a risk that goods to be held up at the border needlessly, and that collection costs would exceed revenue gained."

In a separate law change last year, the Government did impose GST on digital goods, nicknamed the "Netflix tax," from October this year.

Harford said that law proved it would be easy for international e-tailers to pay their fair share of GST.

The world's top 20 online retailers accounted for two–thirds of all international online sales to Kiwis, and they generally already had the capability to collect GST, he said.

"There is no good reason why the Government can't follow the Australian lead and require foreign firms to pay GST on sales they make in New Zealand," he said

"Offshore collection of GST may not be a perfect solution – but it would be a significant step forward."

Booksellers NZ's Lincoln Gould said it seemed like the Government was "tying itself in knots" over the collection of GST on small value goods including books.

"There has been so much research done on this issue over the past four or five years and it really is time for the Government to act in the same way they have done on GST on intangibles and digital services," he said.

"There is no point in further complicated research into systems that will ensure every last cent can be collected."