Rants, Raves, Reviews


Floating GST

By Gary R, in , posted: 6-Aug-2007 09:36

Our Reserve Bank really does seem to have some odd ideas. Recently there was the mortgage levy proposal and now it is suggesting that tinkering with GST could be an ideal method of dealing the peaks and troughs of our apparent rampant consumerism.

The suggestion is that in times of resource constraints GST could be increased across the board with the extra tax revenue hoarded to be given back as a GST cut during weak economic periods.

This whole idea is actually quite ridiculous for a couple of obvious reasons:

1. We have a fixed GST rate on everything. Any increase in GST will affect poor people. Basics such as food and electricity will become more expensive.
2. Governments never give anything back. You can guarantee that any extra tax revenue will not be put aside and will instead be pumped into the consolidated fund.
3. It would be easy to defraud. Any small business could purchase that new TV or car and simply claim back the GST as they do now.

Our Reserve Bank is fast becoming the Ministry of Silly Thoughts.











Tag(s):     


Other related posts:
I Smell a Conspiracy
Disposal of Eco-bulbs
Welcome to Vuestar




Permalink to Floating GST | Add a comment (3 comments) | Main Index




Comment by Grant17, on 6-Aug-2007 10:20

"Our Reserve Bank is fast becoming the Ministry of Silly Thoughts."

I couldn't agree more with you Jama. A floating GST rate is one of the stupidest monetary policy ideas I've ever heard of. Imagine the compliance costs imposed on businesses! Many of us would need to get patches made to our accounting systems as the 12.5% rate is hard-coded in a lot of cases.

Aaaarrrgghhh -- this sort of "innovation" is something we could well do without.

Why don't the Reserve Bank put their efforts into developing a more sophisticated monetary policy than their current "blunt instrument" interest-rates only approach?


Comment by Bung, on 6-Aug-2007 11:32

"Many of us would need to get patches made to our accounting systems as the 12.5% rate is hard-coded in a lot of cases."

Was this by Screw The Customer Software Inc? Who thinks that GST will never change?


Comment by Grant17, on 6-Aug-2007 13:26

"Was this by Screw The Customer Software Inc? Who thinks that GST will never change?"

Oops, you're quite right Bung, I didn't look hard enough in our accounting software the first time. I found the place to change it eventually

It would still be a right PITA though having some accounting periods using a new rate, and some the old rate, during the changeover period.


Add a comment

Please note: comments that are inappropriate or promotional in nature will be deleted. E-mail addresses are not displayed, but you must enter a valid e-mail address to confirm your comments.

Are you a registered Geekzone user? Login to have the fields below automatically filled in for you and to enable links in comments. If you have (or qualify to have) a Geekzone Blog then your comment will be automatically confirmed and placed in the moderation queue for the blog owner's approval.

Your name:

Your e-mail:

Your webpage:

Jama's profile

Gary R
Wellington
New Zealand


Jama JamLocations of visitors to this page

link luvin

Where I work

Ranked Blogs

DeLorean Cars to be Built Agai...
(30-Jul-2007 15:36, 97038 views)
Will my phone work on the new ...
(28-Apr-2009 12:50, 52111 views)
Reminiscing on Palm...
(29-Mar-2006 12:15, 44472 views)
Telstra UMTS 850 - what a chal...
(26-May-2006 17:03, 31655 views)
Yahoo and Xtra Retardo Mail...
(1-Mar-2007 13:27, 30384 views)
Sierra Wireless 595U USB EVDO ...
(10-Jul-2007 23:12, 28979 views)
The Price of Milk...
(10-Jul-2007 19:35, 25426 views)
GE Money where did they come f...
(4-Jul-2006 19:06, 24562 views)
Dangerous Dave and Brutal Bob...
(18-May-2007 11:04, 19572 views)
Wind Turbine micro power gener...
(28-Jun-2007 19:15, 19450 views)


Most Recent

I Thought I would Come Back...
Unemployment does get boring...
Will my phone work on the new ...
Telstra 21...
Qualcomm gen 2 Gobi World Mode...
Acer Aspire One Netbook Teardo...
Vodafone NZ Launches 3G Acer A...
Over the 'i'...
Sprint USB multi 'G' modem...
Head of New Media buys into 'o...




View blog authority

Technorati Profile

Add to Technorati Favorites

View blog reactions