GST Bill defeated in Parliament
Thursday, 5 August 2004
A bill to get GST removed from local body rates failed to get over its first hurdle in parliament on 4th August, 2004.
United Future MP Gordon Copeland put forward a members bill to Parliament, seeking to remove GST from rates. He claimed making local body rates zero-rated when it comes to GST would have saved ratepayers about $160 million a year.
The bill was defeated 89 votes to 31.
Finance Minister Michael Cullen says GST is a good broad-based tax that should be applied to rates because local authorities provide services.
Some people think that GST on rates is unjustifiable because it is a tax on a tax. Some argue that local authorities provide goods and services and therefore GST must be applied.
What do you think?
Would your opinion be different if the government were to allocate the GST back to local government, thereby putting the money back into the community it comes from?
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