Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


GST decision avoids carbon-fuelled headaches

Media release

Government GST decision avoids carbon-fuelled headaches

“The Government should be thanked for its pragmatic and timely solution to the GST treatment of emissions units,” said the Tax Director of the Institute of Chartered Accountants, Craig Macalister, today.

The initial proposal was to subject emissions units to GST in full, which would have led to many complications.

The decision to zero-rate transactions involving emissions units for GST purposes (whether New Zealand units or other Kyoto compliant units) is a pragmatic and sensible solution, Mr Macalister said.

“To subject emissions units to GST would have meant carbon-fuelled headaches, more boring paper work and increased compliance costs for business,” Mr Macalister said. “It is the sort of pragmatism shown in this decision that the Institute has long advocated and the Government and its advisers deserve credit for this refreshing approach.”

Previously, the legislation was sitting in a taxation bill that is not likely to be passed in time for the introduction of emissions trading. By putting the GST treatment in the Climate Change (Emissions Trading and Renewable Preferences) Act, it will be in place as of 1 January 2009.

Julia Hoare, PricewaterhouseCooper’s Climate Change Partner, and former Chair of the Institute’s National Tax Committee, supported the Institute’s view adding that “The Government deserves credit for getting the GST treatment resolved this quickly. Because GST is a transactions tax, people needed to understand the GST treatment as early as possible.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Water: Farming Leaders Pledge To Help Make Rivers Swimmable

In a first for the country, farming leaders have pledged to work together to help make New Zealand’s rivers swimmable for future generations. More>>


Unintended Consequences: Liquor Change For Grocery Stores On Tobacco Tax

Changes in the law made to enable grocery stores to continue holding liquor licences to sell alcohol despite increases in tobacco taxes will take effect on 15 September 2017. More>>

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>


By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>


Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>


Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>