GST-Free Rates Will Bring Relief to Household Budget

Rates are a large and often dreaded bill for many home owners, especially those on fixed incomes, says New Zealand First Spokesperson on Local Government Andrew Williams.

“Our policy announced yesterday to remove GST from rates on residential properties will bring relief to New Zealanders living on the edge who are forced to budget with extreme care.

“Rates are essentially a property tax, therefore GST is a tax on a tax. It is neither fair nor common sense. There can be no justification for it.

“A home owner cannot claim anything back from paying GST on rates, as businesses can.

“When National put GST up to15% they collected more money, but where was the benefit to New Zealanders?

“Instead the increase added to the burden of all New Zealanders, especially those who have not had a wage rise in years and those on fixed incomes like superannuitants.

“Many New Zealander are on low incomes, and despite working hard, struggle to meet their daily living costs,” says Mr Williams.

“On the subject of local authorities, New Zealand First reiterates that amalgamations and reorganisation should not be foisted on New Zealanders.

“There is nothing wrong with sharing services with other councils across regional areas, and this is already occurring.

“However, as part of a democracy ratepayers have a right to determine their representation and how their rates are spent in their area.

“New Zealand First does not believe in taxation without representation

“We will make sure communities are given the choice.

“Our message on underpinning local democracy is being warmly welcomed by many delegates at the Local Government New Zealand conference being held in Nelson,” says Mr Williams.

ENDS

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