Slip results in refund of GST rise

Press, 27 June 1989, Page 3

Slip results in refund of GST rise

By

CULLEN SMITH

Motorists reregistering their vehicles before June 30 and paying the new 12.5 per cent GST rate are getting a $3.20 refund from New Zealand Post.

Complaints that the new licensing forms included the extra 2.5 per cent, to be charged from July 1, have led to the refunds for motorists paying in advance. By law, consumers do not have to pay the new tax rate — even for services covered after July 1 — if they are invoiced and pay before the end of the month. The anomaly, in licensing forms printed by the Ministry of Transport, was picked up after a complaint about two weeks ago, said New Zealand Post’s motor registration manager in Christchurch, Mr Mike Small, yesterday. Refunds were ordered after a ruling from New Zealand Post’s policy adviser that the extra

charges are illegal. Mr Small said the difference of $3.20 was being deducted at the counter for customers paying personally or refunded in 40c stamps to those paying by mail. “We are the ones who are copping all the flak about it when in fact we are just interpreting the law as required,” he said. He blamed the Wellington head office of the Ministry of Transport, which produced the forms and set the new fees. Relicensing notices were normally sent out about three weeks in advance of the due date. For people whose vehicle registration expired on July 2, it was assumed they would pay on that date.

Motorists who might have inadvertently paid the extra should return to the post office where they made the payment for a refund. The district commissioner of Inland Revenue, Mr Neale McPherson, said he was aware of the motor relicensing anomaly but the department had not received complaints. Most • public inquiries fielded by the department in Christchurch related to lay-by purchases. . Final payments on laybys falling after July 1 would attract 12.5 per cent tax . on the full amount of goods. Final payments before June 30 would be taxed at the 10 per cent rate, Mr McPherson said.