Minister calls on companies to reconsider GST

Minister calls on companies to reconsider GST charge

Revenue Minister Peter Dunne has expressed disappointment that certain utility companies have chosen to charge GST at 15% for services supplied before the GST rate changed on 1 October.

A transitional provision was included in the GST Act to deal with this situation. It allowed suppliers to issue invoices up until 11 October but charge GST at 12.5%, provided certain requirements were met, such as the invoice being dated on or before 30 September 2010.

“I understand some major utility companies such as Meridian, Genesis and Auckland Metrowater have chosen not to use the transitional provision and consequently charged the higher rate of GST.”

“The transitional provision was enacted in August, so these companies have had plenty of opportunity to do the right thing by their customers.”

“The decision of these companies not to use the transitional provision is regrettable and I call on them to act in good faith and credit the overcharged GST on customers’ next accounts.”

“People should therefore check their power bills and contact their suppliers if they are being unfairly charged the higher rate of GST on their September consumption,” said Mr Dunne.

If people have queries about the GST rate change, I encourage them to visit the GST Advisory Panel website (http://www.gstadvisory.govt.nz) or contact the Panel, which is in place until the end of the year.

Information about how the rate change may affect certain transactions can also be found on Inland Revenue’s website at http://www.ird.govt.nz/changes.

ENDS

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