Police Minister Stuart Nash says the Government's gun buyback scheme would exclude parts and dealers.
The current law states that the Government must pay compensation for the value of all banned weapons and for all parts delivered to police.
But Newshub understands that as of Wednesday afternoon, the Government has no plans to change this section of the law - despite saying they won't be compensating for parts.
Brent Millard, a competitive shooter, owns soon-to-be-banned guns - military-style semi-automatics (MSSAs) and assault rifles - and expects to be paid for his gear in the buyback scheme, including the parts.
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"If they don't pay for the firearms and the parts or the accessories, then they're not going to have them turned in," he said.
Asked on Wednesday if the Government will include parts in the buyback scheme, Nash said: "At this stage, we're not looking to do that. We've made it clear at this point that we're only going to buy back firearms."
But the current law under the Arms Act 1983 clearly states that the Government must pay compensation for the value of all banned weapons and for all parts delivered to police.
Dealers are also afraid they won't be compensated for losses.
"Initial indication is no, dealers would not be part of the buyback scheme," Nash said.
He says dealers should return them to the suppliers, but dealers have told Newshub international arms treaties could prevent them from exporting them out of New Zealand.
Aoraki Ammunition owner Paul McNeill says guns can't legally be imported by a business as it must be an individual. He says the Government targeting dealers won't work - they're firearms owners too.
"It's basically taking away our rights as citizens... The companies themselves don't actually own stock - it's the individuals that own it and it's the individuals who import them."
Nash said: "I'm unsure of that, and it's something we're looking into."
Gun City owner David Tipple, who sold the alleged Christchurch killer firearms, has uploaded a statement to Facebook saying "fair compensation paid for the forced surrender of personal property is assured in law".
Parliament has released a list of about 20 people who will get about 10 minutes each to make their case to MPs on Thursday.
Among them are members of the Islamic community and the gun lobby, including David Tipple.