State owned company Meridian jumps the gun on GST

Hard hit Kiwis are being stung by the one of New Zealand’s largest state owned enterprises, which has passed on a 15% GST rise to their customers for electricity they purchased in September, before the October 1 increase of GST from 12.5% to 15%.

"Meridian Energy customers in Canterbury have been charged 15% GST on their September energy bill, despite the 2.5% increase not being introduced until 1st October. By doing so, Meridian is choosing to ignore the legal guidelines on the GST hike provided by the IRD," says Jim Anderton.

"All the costs of the GST rise are being passed on to customers, with no consideration of its effect on hard hit Kiwi households, particularly in post-earthquake Canterbury. It chooses to impose GST at 15% rather than exercise the lawful flexibility to impose GST at only 12.5% for September purchases.

"September is one of Christchurch’s coldest months of the year, but it also included the 7.1 earthquake and 1,300 -1,400 aftershocks. Cantabrians have had a tough time of it of late so their latest energy bill will add insult to injury.

"Our SOEs are putting profits before people, yet Fairfax media, for example, an overseas owned company which owns the Christchurch Press, has taken the trouble to communicate its policy over GST increases to its customers and has only charged 12.5% GST on all September purchases. It should be applauded for putting its customers first.

"National’s GST increase is already affecting the most vulnerable Kiwis. This latest rip off by a Government owned SOE is certainly unfair to electricity customers and refunds from Meridian should be made to all those who have been so unfairly treated. I will certainly be making that point to Meridian’s senior management,” Jim Anderton said.

ENDS

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