The Government’s decision to use revenue from GST changes to fund cuts to other levies and charges should be applauded, says the New Zealand Taxpayers’ Union.
Taxpayers’ Union Economist Joe Ascroft says “When changes to the application of GST were announced, the Government claimed they were to ensure fairness for small businesses and were not a ‘tax grab’. We were skeptical, so we said we would only be willing to support the move on two conditions. Firstly, the Government should commit to revenue neutrality, and secondly, the collection of tax should be as efficient as possible. With cuts to biosecurity fees and duty payments on the way, the Government should be congratulated for its step toward revenue neutrality.”