GST Could Rise Further
September 7, 2010 New Zealand Taxation
An international tax expert has warned that New Zealand’s Goods and Service Tax rate could keep rising in the future, to as much as 20 percent.
On a visit to New Zealand last week Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants, said that it is possible that the New Zealand Government could once again raise the Goods and Service Tax (GST) within the foreseeable future.
Chas Roy-Chowdhury pointed to the UK and other European nation, saying that there has been a recent precedent of steadily increasing the levied rate of consumption taxes. Citing the UK specifically, Chas Roy-Chowdhury said that the Value-Added Tax rose to 20 percent earlier this year, and added that: “…it seems like a similar trend is happening in New Zealand. It is a concern that these taxes creep up.”
Chas Roy-Chowdhury also voiced a concern towards what he perceived as the Government attempting to “privatize the administration of the taxation system.” He stated that as consumption tax rate increased, the responsibilities of tax administration shifted to businesses, under the increased self-assessment requirements.
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