Study of GST effect

Press, 14 May 1985, Page 9

Study of GST effect

The effect of the proposed goods’ and services tax on Christchurch City Council activities will be investigated. The council had been asked by the Municipal Association for comments on the tax to add to its submissions to the Government. Because the submissions must be in by Friday, the council’s contribution will take the form of several questions on uncertain areas.

The council will also complete a detailed study for its own purposes on the effect

and administration of the tax.

The Town Clerk, Mr John Gray, said the tax would cost the council something in administration expenses. There would be two entries in the books for all incoming and outgoing items, and the council would remit the difference between the GST on incoming and outgoing goods to the Government every two months. The tax would bring a cost to the council in administration expenses, although the council was in effect a remitting agency, he said.

However, there were several grey areas, such as transactions between departments of the council, and the accounting for the tax, that had to be investigated. The City Treasurer, Mr Robert Lineham, will head a project team to look at the tax.

The council’s policy and finance committee yesterday set up two other project teams to look at local government structure and at the relationship of the Official Information Act to local authorities.