Ōtaki MP Nathan Guy is welcoming the major tax cuts coming into force this Friday 1 October as a real boost to local families and pensioners.
“From this Friday income tax and tax on savings will be cut, along with a small increase in GST. This will give people more cash in their pockets and encourage savings.
“73% of income earners will be paying less than 17.5% in tax, which is great news for Kāpiti and Horowhenua. This is the biggest reform of our tax system in 25 years and the vast majority of people will be better off.
“The average family will benefit by around $25 a week and the increase to NZ Super means that a retired couple will be around $11 a week better off after GST is factored in.”
Mr Guy said Labours ‘axe the tax’ stance has proved to be a flip flop. “Labour told locals they would be reducing GST but now they acknowledge our package is fair and balanced and won’t be repealing it.
“GST works well because it’s simple and across the board. Bringing in an exemption for fruit and vegetables would be complicated and a nightmare for businesses to administer.
“It seems crazy that under Labour’s scheme, imported vegetables would be exempt but not locally grown spuds from Opiki that are frozen into chips.
“Overall this would only save the average person about $1 a week. It will cost the government $240 million a year and taxes would have to go up under Labour.
“Voters will be asking the obvious question – if it’s such a great idea why didn’t Labour do this when they had nine years in power?”no