Posts Tagged ‘GST on Rates’

Rates and GST

15 March 2010

Don’t forget that the Government’s signalled rise in GST by 2.5% will affect your rates as well as just about everything else.

I have always felt that GST on rates is wrong – a tax on a tax. 

The Government’s response (no matter who is in power) has always been that rates are a charge for services.

There might be a case for saying that some of our rates bills are a charge, e.g. the Kaiapoi water charge, the Eastern Districts sewer charge, the libraries charge across the District – although even then I would argue that these charges are not for services but for the availability of service, i.e. a tax.  There is certainly no case for saying that rates-in-the dollar are a service charge.  The the level of rates varies with the value of one’s property – in other words, rates are a property tax.

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