The New Zealand tax authority may refuse to apply tax on goods and services to cryptocurrencies.

The document indicates the rapid development of the cryptocurrency sector. At the same time, digital assets cannot be unambiguously called an investment product, which makes it difficult to apply the current tax legislation.

Currently, cryptocurrencies and tokens in New Zealand fall under the category of “property” and are taxed at a 15% rate when transferring assets. The asset holders also pay income tax. In this way, the tax office intends to waive the tax on goods and services in relation to assets used as securities or currencies.

At the same time, the income tax in relation to digital assets will not be canceled.

The tax authority will be accepting comments regarding the initiative until April 9