1 April 2002

Charities Worried At Being Saddled With Extra Taxes

Charities are frightened by the Government's threats to impose Fringe Benefit Tax on the cars and housing provided to their workers, National's Revenue Spokesperson Annabel Young said today.

The Inland Revenue Department is currently working on imposing FBT on every charity. "I have received many calls and emails from people who are worried about the extra cost this will lumber on them. Many charities cannot afford to pay this tax but they still need to have their workers in cars to reach the needy.

"Without transport, they cannot do their jobs. Many charities provide housing and do not want to turn their workers, including priests and nuns, out onto the streets.

"This is no way to celebrate Easter. The Government should have some more heart than this.

Last year pressure from National against the tax on charities forced the Government to extend the deadline on submissions. Ms Young said that there was still time to force the Government to back down on this issue.

"Donors and supporters should write to Dr Cullen to tell him that they think he should not be forcing Charities to pay this extra tax," Ms Young said.

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