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Cut GST on Food, Electricity for Fairness

Media Release
Sunday 29 May 2005

Cut GST on Food, Electricity for Fairness

“A cut to GST alongside a rise in progressive tax for those on higher incomes and higher Government expenditure on health and education is the way to get a fairer society,” said Paul Piesse, Alliance Co-leader. He was commenting on the post Budget debate over tax cuts and Government spending led by National’s call for tax cuts by Xmas and Labour’s significant Budget surpluses.

“GST as a flat tax currently set at 12.5% unfairly hits those on low incomes. These people have to spend all their weekly income or even go into debt to survive,” said Paul Piesse. “The Alliance would like GST removed from some basic goods like food and electricity. Even Australia does that. This would be a move toward a wider goal of eliminating GST altogether.”

“Alongside these changes the Alliance believes New Zealanders back higher progressive taxes for top earners, provided the resulting surpluses are used to fund free education and healthcare,” said Paul Piesse.

”The debate for the election should be about how we achieve a fairer society. How do we ensure the rich are not getting richer at the expense of the poor getting poorer, as has occurred in New Zealand since the Rogernomic reforms were foisted on our society without a mandate in the 1980s,” said Paul Piesse.

“Kiwis have to recognise that the budget surpluses have come from underpaying state sector workers since 1990, big surpluses from Government owned power companies and from underspending on health and education,” said Paul Piesse.

ENDS

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