Media Statement Tuesday, 23 March, 2004

Adams: Carter's GST gaffe taxes credibility

Local Government Minister Chris Carter's "extraordinary lack of grasp of where the GST component on rates actually goes" should be a huge concerns to both the nation's local bodies and ratepayers, United Future's Paul Adams said today.

"If the Minister is under the impression that councils have millions of dollars that they don't actually get, then someone needs to sit him down and set him right," the Auckland-based MP said.

"If he thinks that GST on rates is revenue for councils, then he needs to do Taxation 101," Mr Adams said in renewing United Future's call for GST to be taken off rates.

"It's a tax on a tax - and no, Mr Carter, councils don't get the chance to spend it and therefore, they will not have to seek new sources of revenue to replace it.

"United Future simply wants ratepayers given a fair go - it's time to end this double whammy," he said.

Speaking in Parliament this afternoon, Mr Adams said the Government had failed to come up with a "single useful proposal" to address public concerns over the rates burden on New Zealand families and businesses in the best part of a year since the Auckland 'rates revolt'.

Ends.

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