Whacking up GST, probably to 15 per cent, is on the cards if the Government follows the recommendation of a working group presenting options for the Government to restructure the tax system.
Hiking GST will provide a huge opportunity for the Government to raise more cash.
Basically every 2.5 per cent of GST increase injects another $2 billion a year. The Crown currently rakes in $10.6 billion net from GST.
The working group includes members from Inland Revenue, Treasury and tax experts like Deloitte's Mike Shaw, who says reducing tax fraud and loopholes and making the system more efficient are among the reasons for raising GST.
Shaw says the current system has too many loopholes, which he calls "serious evils" that enable people to set up tax rorts.
Hiking GST will provide a huge opportunity for the Government to raise more cash.
Basically every 2.5 per cent of GST increase injects another $2 billion a year. The Crown currently rakes in $10.6 billion net from GST.
The working group includes members from Inland Revenue, Treasury and tax experts like Deloitte's Mike Shaw, who says reducing tax fraud and loopholes and making the system more efficient are among the reasons for raising GST.
Shaw says the current system has too many loopholes, which he calls "serious evils" that enable people to set up tax rorts.
Cheers
Marc
Comment