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NZ First GST Policy Not Thought Through


NZ First GST Policy Not Thought through

20 JULY 2014

Reacting to New Zealand First leader Winston Peters’ policy announcement to remove GST on food, Jordan Williams, Executive Director of the Taxpayers’ Union says:

“It's good that New Zealand First is acknowledging that New Zealand families are over-taxed, but introducing new complexity to GST won’t reduce the burden."

“Policies such as these force the IRD to decide the difference between what is a food and what is a meal. A frozen pie would not be taxed, but once placed into a warmer GST would apply."

"New Zealand's simple and transparent GST system is the envy of the world. Mr Peters must know this but is choosing to give it up while knowing that more credible measures would help kiwi families.”

According to The Treasury, the annual cost to the Crown per percentage of GST-rate reduction equals approximately $980 million.

"For the amount Mr Peters claims his policy will cost, GST could be reduced from 15 to 12 percent."


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