Prices going up before GST kicks in

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graemeh

2078 posts

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#385502 28-Sep-2010 15:29

No people. Think about it. Having exceptions in GST is STUPID. It just makes the system more complicated which means it costs more to run which benefits nobody.

Much easier to just apply the same rate across everything.

This also leads to many silly quirks and exceptions. You then get lawyers fighting over things like "are pringles potato crisps" because potato crisps are subject to VAT where cakes or biscuits are not.

robbyp

1199 posts

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#385505 28-Sep-2010 15:32

Linuxluver: I've noticed quite a few places have already put their prices up....and may well do so again when the GST rate rise kicks in....or they will claim they've 'held the line'.

We went to a chemists in the Glenfield Mall yesterday and picked up an item. The price marked on the goods was about $2 less than the till said it should be. The person serving behind the counter explained to my wife (I was off looking at something else) this was because they had already added the new GST amount.

I would have argued the point....but my wife had chosen not to. Her call.

That aside....has anyone else noticed prices leaping this past week?

They really have to put up prices before the rise, due to the quantity of products they sell. One shop on the news said it would take 3 weeks for them to change all their pricing.

Linuxluver

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#385516 28-Sep-2010 15:44

graemeh: No people. Think about it. Having exceptions in GST is STUPID. It just makes the system more complicated which means it costs more to run which benefits nobody.

Much easier to just apply the same rate across everything.

This also leads to many silly quirks and exceptions. You then get lawyers fighting over things like "are pringles potato crisps" because potato crisps are subject to VAT where cakes or biscuits are not.

I agree.

The company I work for writes software used in several countries and NZ is BY FAR the simplest environment of them all with what MUST be the lowest compliance costs of any of them. Our tax regine is simpler than all the others. Our government regulators are simpler and more clear and with fewer exceptions than all the others.

Australia and the UK have a little GST here and little there...and the rorts that go on to avoid it...and the extra beefed up supervision to catch the rorts.....

Labour's new policy on GST is simply.......stupid. Whoever dreamt that up needs to be an ex-MP urgently.

Having GST on everything was one of the *good* things that came out of the reforms of the 1980s.

_____________________________________________________________________

I've been on Geekzone over 16 years..... Time flies....

robbyp

1199 posts

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#385606 28-Sep-2010 19:10

graemeh: No people. Think about it. Having exceptions in GST is STUPID. It just makes the system more complicated which means it costs more to run which benefits nobody.

Much easier to just apply the same rate across everything.

This also leads to many silly quirks and exceptions. You then get lawyers fighting over things like "are pringles potato crisps" because potato crisps are subject to VAT where cakes or biscuits are not.

They however already do have GST exclusions on things, such as bank fees and other financial transactions. If they do want to go ahead with this, they should follow Australias lead and precedents for what they include and exclude, they should be ok.

However it is really just rearranging the deck chairs on a sinking ship, and not solving the real problem. The real problem is NZ as a country needs to earn more, and reduce it's HUGE debt. We are borrowing that $250 million each week, whoich would pay for that GST they are thinking of taking off veges.

graemeh

2078 posts

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#385728 29-Sep-2010 09:03

robbyp:
graemeh: No people. Think about it. Having exceptions in GST is STUPID. It just makes the system more complicated which means it costs more to run which benefits nobody.

Much easier to just apply the same rate across everything.

This also leads to many silly quirks and exceptions. You then get lawyers fighting over things like "are pringles potato crisps" because potato crisps are subject to VAT where cakes or biscuits are not.

They however already do have GST exclusions on things, such as bank fees and other financial transactions. If they do want to go ahead with this, they should follow Australias lead and precedents for what they include and exclude, they should be ok.

However it is really just rearranging the deck chairs on a sinking ship, and not solving the real problem. The real problem is NZ as a country needs to earn more, and reduce it's HUGE debt. We are borrowing that $250 million each week, whoich would pay for that GST they are thinking of taking off veges.

I think life insurance is the only other exception. Like financial transactions it's relatively easy to define.

If they did drop the GST on fruit & veges then that would just add to that $250m you say is being borrowed each week.

kingjj

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#385756 29-Sep-2010 10:00

graemeh:
I think life insurance is the only other exception. Like financial transactions it's relatively easy to define.

If they did drop the GST on fruit & veges then that would just add to that $250m you say is being borrowed each week.

Or they will just bump up the tax on tobacco as Labour has suggested to pay for the GST cuts.

I don't see any issue with places putting up their prices before Oct 1st, cost's rise and fall daily. Take supermarkets for instance, there may be 100+ prices changes in a day. Heck sometimes theres several prices changes on a single product in a day. If they want to change the price thats fine, its up to the consumer to decide whether its competitive and pay it.

Do enjoy your precious coffee going up by a mile though

graemeh

2078 posts

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#385760 29-Sep-2010 10:16

kingjj:
graemeh:
I think life insurance is the only other exception. Like financial transactions it's relatively easy to define.

If they did drop the GST on fruit & veges then that would just add to that $250m you say is being borrowed each week.

Or they will just bump up the tax on tobacco as Labour has suggested to pay for the GST cuts.

I don't see any issue with places putting up their prices before Oct 1st, cost's rise and fall daily. Take supermarkets for instance, there may be 100+ prices changes in a day. Heck sometimes theres several prices changes on a single product in a day. If they want to change the price thats fine, its up to the consumer to decide whether its competitive and pay it.

Do enjoy your precious coffee going up by a mile though

I'm a geek, my caffeine comes in a red can.

Some coffee outlets in Wellington have already advertised that their prices will NOT be going up.

Multiple price changes in a day must be very tricky to implement. If the price increases between when the customer picks the product from the shelf and when they get to the checkout I can see some rather loud arguments happening.

I know of someone who had this happen to them. Apparently one of the suburban New Worlds in Wellington was putting prices up during their peak trading times. Very sneaky.

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