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Kiwi VPN users to face $25,000 fine

The government has announced its intention to start levying GST on imported goods as of October 2016.

According to this NZH story, "Online consumers who used a virtual private network (VPN) to make it appears as if they were overseas could face fines of up to $25,000".

Right now it appears that fine will only apply if you're using a VPN to sidestep the addition of GST by the supplier -- but it sets a very, very nasty precedent and becomes the "thin end of the wedge" when it comes to a potential crack-down on Kiwis rights online.

I'm sure it doesn't take a rocket surgeon to see where this is headed...

How long before we see VPN use subject to strict licensing -- so as to avoid the use of such services to sidestep geofencing and other (allegedly) criminal activities?

As I've said before, we have governments whose business model consists largely of taking our "rights" and selling them back to us as permissions or licenses. The VPN may well be high on their list of potentially profitable targets in this regard.

I honestly believe that it is only a matter of time before VPNs and proxies become a "restricted service" which can only legally be used by those who have been vetted and approved (for a stiff fee) by government agencies. Users will have to keep logs of their activities and surrender them to the relevant government agency(s) on-demand -- so as to prove that they're not engaged in any illegal activity.

Driving this will be three factors:

Firstly, there's the opportunity to make a little money by charging us for what was once a right. That's cash in the bank for a government which still spends inordinate amounts on perks and privileges for its MPs.

Secondly, it will be a demand rolled out by US media giants who are not at all happy that they are losing control of video and audio distribution. Although the likes of Netflix might not care that Kiwis can watch the US version via a VPN or proxy server, the studios creating that content are less than best-pleased. They will be pushing very hard for NZ to exert strong controls over the use of technology that threatens their profits. In fact, who's to say that the taxpayer won't be sued under the terms of the TPPA if it does not act?

Thirdly, the old "war against terror" card will be played.

We'll be told that restricting access to opaque communications, such as those which travel via a VPN, must be a priority if we're to save the lives of innocent Kiwis. "Only terrorists, pirates and tax-cheats need VPNs" we'll be told.

So there you go... more freedoms nixed, more rights stolen, more control exerted by governments that really should focus on getting properly carrying out their existing responsibilities before thinking up new roles for themselves.

And you know... if the government was *really* keen on recovering the lost GST they claim is the real reason for this move -- why the hell don't they put up an "honesty box" website?

Let's face it, most people are pretty honest and if the government gave us a convenient, cost-effective way to pay the small amounts of GST often due (but not collected) on personal imports then they may get a surprise.

How much would it cost to set up such a site and payment acceptance facility?

Surely a good web-designer and programmer could knock up such a thing in under a week and even if it clawed back just $500K a year -- it would pay for itself in no-time and let honest Kiwis keep up with their GST obligations.

That the government would rather club us with the threats of huge fines and draconian, unenforceable demands of offshore e-tailers speaks volume to their dullardry.

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