At the moment, for >99% of business income and expense transactions, either the whole transactions includes GST or none of it does. This makes the accounting really straight forward as the person preparing the GST return doesn't need to check receipts for most things. E.g. bank fees & interest=noGST; a purchase from Countdown or BP=GST on the full amount (assuming it was a business purchase).
If, however, thus GST change gets through, we're going to have to start reviewing individual receipts to manually enter the specific GST content rather than being able to let the accounting software work it out automatically.
And I'd be hugely suprised if the change reduced produce prices long term. Prices go up and down, and consumers largely just accept it, so their is no real way of knowing if we're getting the benefit or if it is instead being enjoyed by the retailers...and that not being able to know is exactly why I expect the retailers to take the saving themselves.
https://www.nzherald.co.nz/nz/new-zealan...ZW2ADSSZE/
As I expected, not one expert had a good word to say about it. The recurring theme was that it was a populist idea banking in the fact that the general public has too poor an understanding of the whole thing to realise it is such a bad idea.
If everyone who actually understands out tax system thinks it is a bad idea and won't actually achieve its intended aim, how can those of you with zero expertise in the matter think that you know better? Sure, most people would like it to be easier for poor people to buy fresh produce, but this just isn't a valid solution.
If, however, thus GST change gets through, we're going to have to start reviewing individual receipts to manually enter the specific GST content rather than being able to let the accounting software work it out automatically.
And I'd be hugely suprised if the change reduced produce prices long term. Prices go up and down, and consumers largely just accept it, so their is no real way of knowing if we're getting the benefit or if it is instead being enjoyed by the retailers...and that not being able to know is exactly why I expect the retailers to take the saving themselves.
https://www.nzherald.co.nz/nz/new-zealan...ZW2ADSSZE/
As I expected, not one expert had a good word to say about it. The recurring theme was that it was a populist idea banking in the fact that the general public has too poor an understanding of the whole thing to realise it is such a bad idea.
If everyone who actually understands out tax system thinks it is a bad idea and won't actually achieve its intended aim, how can those of you with zero expertise in the matter think that you know better? Sure, most people would like it to be easier for poor people to buy fresh produce, but this just isn't a valid solution.