24 Aug 2010

Labour calls for GST exemption on this year's rates

12:04 pm on 24 August 2010

Labour Party leader Phil Goff is calling on the Government to exempt this year's local government rates from the increase in GST.

GST will increase from 12.5% to 15% on 1 October.

Mr Goff says the Government has already exempted five-year finance leases, lay-by sales and insurance contracts from the increased GST rate.

He says many councils are offering to charge GST of 12.5% to ratepayers who can pay their annual bill in a lump sum, but this puts people who can't afford to do so.

Mr Goff says an overall exemption should be put in place for the transitional period.