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.