GST still on

Press, 6 July 1985, Page 3

GST still on

PA Wellington The Minister of Finance, Mr Douglas, said yesterday that he would not compromise on his goods and service tax plans in spite of Australian Government moves to back away from plans to introduce a similar tax. In an interview, Mr Douglas said he would press on with plans to introduce a wide-ranging GST in October, 1986. Last month he announced a six-month delay in the original April 1 timetable, to allow greater community consultation. He said Australia’s approach to tax reform has always differed from New

Zealand’s. “I think the important thing is that they have accepted the need for tax reform,” he said. The Australian move will not complicate his bid for public acceptance of a big reform of the domestic income tax regime. Mr Douglas said he believed that many people would withhold final support for GST until they saw the details of promised tax cuts, likely in a September statement on taxation. “I think we have got a package together which looks very, very good,” he said. He declined to give details.