FFS leave GST alone Chippy

[SueDonim]

And then you get the situation of landlords not passing their rates deduction onto their tenants, in much the same way as the F&V supermarket scenario.

A far better approach would be to zero tax the lowest income bracket. Simple, focussed and uncorruptable, but I seem to remember someone else suggesting that approach just lately.

They should though and landlords should be made to prove they have dropped it. Besides it would be tax deductable for a landlord anyway wouldn't it?

For residential property owners, rates are income tax deductible, like some* other expenses. GST itself is not charged or claimed on anything related to residential property - ie tenants don't pay it so landlords can't claim it.

*In pretty much all other areas of running a business, all expenses can be claimed including building depreciation and interest payments. But not for residential properties. The ability to claim building depreciation was removed some time ago, and claims on interest paid is being phased out by March 2025. The effect of these changes is to make it more expensive to run the business properly, expenses that ultimately get passed on to customers - ie the tenants. 

There was something in the news this week about Labour's plan to extend the depreciation rules to commercial buildings which will mean extra expenses for many businesses who will need to pass the costs on to customers, not just supermarkets but everyone else as well.

Yes, GST on rates is a government tax on top of a council tax and removing it would be good, but, like the proposals for removing GST on F&V would be chicken feed in the bigger picture. The compliance cost of running a business, any business, keep on growing and everyone pays, with those who can least afford paying the greater proportion in many cases. It would be so much better to just reduce the tax take from low income earners, recoup that from the higher income tax brackets and inflation proof the whole system.