Goods and services tax

Press, 4 April 1985, Page 12

Goods and services tax

Sir, _ “The Press” editorial of March 28 said that the temptation to exempt items from the goods and services tax on the ground of injustice “must be resisted.” Such an attitude towards justice is deplorable. Most people will add the cost of the tax to their prices, but market gardeners, whose produce is sold by auction, cannot do that. This makes the tax unfair to them and is a strong argument for exempting locally-grown fruit and vegetables. Last year “The Press” reported that a survey of 4185 fruit and vegetable farms showed an average net income of $5878. That is $ll3 a week. People on that income would pay little income tax and could not be adequately compensated by a reduction of income tax. Of course, if many market gardeners were forced out of business, the price of vegetables would soar, but is that what the Government wants? - Yours, etc., MARK D. SADLER. April 2, 1985.

Sir,—Mr Douglas said at a recent Yaldhurst meeting that New Zealand had one of the highest income tax levels in the Western world. He did not say that this is caused by a Government apparatus that is far too big for a country as small as New Zealand. Duplication of research by the Ministry of Agriculture and Fisheries and the D.5.1.R., the Forest Service and Lands and Survey are some examples of waste. The GST might bring down the income tax for the low to medium income earners but the total tax grab will be much higher than before, so who is the Minister kidding? If the mandarins in Wellington cannot be kept in check the GST will hardly be enough to make a decent dent in the deficit of $3.15 billion of the last 11 months. Dismantling many of the statutory bodies is necessary as well as important parts of the Government departments, but of course the job situation for the boys would become less rosy. — Yours, etc., P. A. VAN DUGTEREN. April 1, 1985.