Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


GST Off Rates Not The Answer, Says Shirley

GST Off Rates Not The Answer, Says Shirley

Monday 2 Aug 2004
Ken Shirley
Press Releases -- Taxation

ACT New Zealand Local Government Spokesman Ken Shirley today urged United Future's Gordon Copeland to dump his Private Members Bill proposing the exclusion of GST on rates.

"This is a hoary old chestnut that successive governments have rejected for good reasons - and it does United Future little credit to dredge it up once more," Mr Shirley said.

"GST is a tax on the price of goods and services that councils supply, rather than a `tax on a tax' as Mr Copeland claims. If local authorities were to be exempt from GST or zero-rated, they would be tax preferred relative to private businesses.

"If GST were only to be applied to goods and services supplied by council trading activities, rather than public good activities, then there would be complex boundary problems undermining the integrity of our GST system.

"United Future claim that its proposal would help businesses, but nothing could be further from the truth. GST is a tax on final consumption, and it is the consumers who would derive any benefit if rates were zero-rated or exempted. All that businesses would incur is the writing of larger GST cheques to Inland Revenue.

"If United Future is concerned with the burden of rates then I share that concern. Rates have been escalating well above levels of inflation for many years. This problem should be addressed directly by curbing excessive activities and expenditure of local authorities, along with the removal of waste. The tinkering with GST is not the answer," Mr Shirley said.


For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Corrections Corrected: Supreme Court Rules On Release Dates

Corrections has always followed the lawful rulings of the Court in its calculation of sentence release dates. On four previous occasions, the Court of Appeal had upheld Corrections’ practices in calculating pre-sentence detention. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>


Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>


Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news