Submissions invited on new tax

Press, 15 March 1985, Page 24

Submissions invited on new tax

PA Wellington The Government’s White Paper on proposals for the administration of the goods and services tax would be tabled in Parliament on March 26, said the Minister of Finance, Mr Douglas, yesterday. The White Paper had been written to provide interested organisations, businessmen, and members of the public with a simple technical description of how the tax would be administered, he said. Draft legislation for the new tax was included in the White Paper. “Our objectives in publishing the White Paper are to give the business community ample opportunity to understand what is proposed, plan in advance, and also to make submissions to the Government,” he said. “The Government regards it as very important that the community should be consulted, and should be in a position to contribute to

the design of this new approach to indirect tax in New Zealand.” On the basis of that consideration, final legislation would then be drafted for introduction in Parliament about June, he said. “Submissions are invited from any organisation, business or individual who wishes to suggest means of improving the administration of the tax, to make it as economical and troublefree as possible.” The closing date for submissions would be May 17. They would be analysed by a task force of Treasury and Inland Revenue officers, and an independent privatesector panel reporting direct to Mr Douglas. The goods and services tax was being introduced in New Zealand to provide funding which would permit important reforms of the income tax and benefit, Mr Douglas said. Both the goods and services tax and the improvements in the income-tax structure would be implemented on April 1,

1986, with synchronised changes in the benefit system, he said.

The White Paper would be available to the public from all Government bookshops, as soon as possible after tabling in Parliament. Mr Douglas emphasised that the White Paper was a technical document describing proposals for the operation of the tax, and how businesses of all kinds would be involved in its administration.

The public issues involved in the question of a goods and services tax would be reviewed by a separate publication now in preparation, called “G.S.T.: The Key to Lower Income Tax.”

This publication analysed the deficiencies of the present New Zealand taxation system, the options for reform, and the reasons why a broad-based G.S.T. system had been chosen by the Government, he said. It was likely to be available to the public about the same time as the White Paper, Mr Douglas said.