Thursday 22 July, 2004

Local Government Forum should do Tax Law 101

The Local Government Forum is factually wrong to suggest that removing GST on rates would raise costs for everyone, United Future revenue spokesman Gordon Copeland said today.

"If my Bill removing GST on rates becomes law then businesses will, of course, have nothing to claim back because they won't have paid it in the first place! The removal of GST on rates will be completely neutral for rate-paying businesses. Their costs will be exactly as they are now.

"It is unbelievable that a body such as the forum has such a woefully inadequate understanding of GST. It is simply out of touch.

"Anyone who has completed a GST return for a business knows that you only claim GST back if you have paid it in the first place. It is as simple as that.

"Let's be clear. The removal of GST on rates will not alter the net revenue of councils or the net revenue of businesses. It will, however, mean that the 12.5% GST impost will no longer be added to the bills of 1.7 million ratepayers," Mr Copeland said.

"Frankly, I am also staggered that the forum, which has consistently called for lower taxes, should find fault with a proposal which will leave at least $160 million in the pockets of New Zealanders."

ENDS

© Scoop Media

Gordon Campbell: On the Sony cyber attack

Given the layers of meta-irony involved, the saga of the Sony cyber attack seemed at the outset more like a snarky European art film than a popcorn entry at the multiplex.

Yet now with (a) President Barack Obama weighing in on the side of artistic freedom and calling for the US to make a ‘proportionate response’quickly followed by (b) North Korea’s entire Internet service going down, and with both these events being followed by (c) Sony deciding to backtrack and release The Interview film that had made it a target for the dastardly North Koreans in the first place, then ay caramba…the whole world will now be watching how this affair pans out. More>>