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Councils should flush the toilet tax – MANZ

Councils should flush the toilet tax – MANZ

The idea of a toilet tax should be flushed away and councils should concentrate on ideas that support business not punish it, says the Motel Association of New Zealand (MANZ).

Many councils across the country tax on commercial premises based on the number of toilets they have, something that disproportionately affects the accommodation sector, MANZ Chief Executive Michael Baines says.

“The idea of a toilet tax stinks,” Mr Baines says. “Commercial accommodation is already working hard to compete against unregulated and untaxed B&Bs and holiday homes and instead of targeting these freeloaders councils are trying to make life harder for legitimate businesses with more tax and red tape.”

Motels and hotels have far more toilets than the likes of bars, restaurants and other businesses in the hospitality sector so would be hit hardest by a toilet tax.

“New Zealand is facing uncertain economic times and we should be supporting small businesses which are the engine room of our economy,” Mr Baines says.

“Unfortunately by now we’re well versed in how little understanding councils have of how hard businesses work to earn their revenue. Councils just use their monopoly position to come up with these tax schemes on a whim, not seeming to realise if they keep piling costs on to business they will fold. Then all of the community – including the council themselves – will be worse off.”

“I hear Councils say they want to encourage economic development. If they were serious about this they would look to cut costs rather than forever seeking ways to increase them, letting businesses focus on growth and creating jobs rather than navigate the never-ending rolls of red tape and new tax,” Mr Baines concludes.

ENDS

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