Catholic Concern for poor in Govt tax changes

The Auckland Catholic Diocese Justice and Peace Commission has expressed concern about how the Government’s proposed tax changes will impact upon lower-income families and individuals at a time when a significant number of families struggle to make ends meet.

In a letter to the Minister of Finance Bill English the Commission highlighted an increase in GST as the change which will have most impact. It pointed out that those at the lower end of the income scale spend all of their income on goods and services and have no margin to put money aside.

The Commission referred to a reported statement of the Prime Minister in February that the Government would not increase GST unless it saw the bulk of New Zealanders better off. In the Commission’s view the Government must ensure that all those at the lower end of the income scale will be better off. It is not sufficient that any increase in GST should merely be counter-balanced by measures that will leave them in just the same situation at present. The proposed changes provide an excellent opportunity for the Government to demonstrate concern by adopting measures that will improve their situation.

The Commission suggested that lower-income earners should be allowed a significant tax-free threshold that will provide a realistic benefit to them.

ENDS

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