Accountancy Firm Lays Bare Complexity Of GST Rise

The impacts of October’s GST increase have been laid bare for all New Zealanders by global accountancy firm Ernst and Young, says Labour’s revenue spokesperson, Stuart Nash.

Stuart Nash said Ernst and Young today stated: ‘As we face the harsh reality of the 1 October GST increase to 15% many are realising this is not a modest increase and the issues are actually more complex than anyone first imagined’.

“Ernst and Young are actually confirming what many New Zealanders already understand,” Stuart Nash said.

“Labour has consistently said that the increase in GST will have a detrimental impact on New Zealand families and business.

“Ernst and Young’s comments today back up everything we have been saying. This represents the exasperated response by New Zealand business to another round of proposed changes to the GST Act released today by the government.”

Stuart Nash says the changes to the Act will further complicate the tax rollout at a time when the economy is still suffering.

“Ernst and Young’s astounding response to Revenue Minister Peter Dunne’s latest changes makes you wonder if the Government really did think this GST increase through in all its ramifications before they forced it through under urgency in Budget 2010.

“The far more likely interpretation is that the Government was so blinded by its desire to reduce the amount of tax paid by its wealthy mates that it couldn’t see --- or refused to see --- the problems that lay ahead for most New Zealanders.”

ENDS

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