Central government used to give the GST component of rates back to the council until John Key needed a ‘one off’ to pay for his projects during the Global Financial Crisis.
But he never kept his word and central Government still steals over a billion dollars a year from councils.
In Whakatane the amount we are robbed comes to over $8 million dollars based on 2022 figures.
While government ministers spout on and on and on about councils focusing on basics rather than ‘nice to haves’ it’s about time to remind them the billion dollars a year they steal off Aotearoa’s ratepayers would be ‘nice to have’ back in our pockets where it belongs.
Every council in Aotearoa agrees and every economist accepts that government keeping the GST portion of our rates is a ‘tax on a tax’.
Government needs to get back to basics and stop treating ratepayers like a bottomless ATM and return the $1.1 billion GST component of rates back to councils.
Further reading:
Govt’s billion dollar tax take on rates must be returned
GST on rates: Council body Local Government NZ makes billion-dollar rates plea
Returning GST on rates to Council would be game-changing
Returning GST on rates to councils would cost $1.1b
GST on rates under scrutiny as council costs soar
The cost of returning GST from rates to local councils
Govt might take $1.1b hit to return GST on rates to councils
Government rejects Auckland Mayor Wayne Brown’s demands over rates, GST
