OECD jurisdictions such as the UK, Australia, and Canada have regimes where tax is not applied to particular food items. However, the introduction of such a measure would be complex in nature and may not be an efficient tool to ultimately and quickly reduce the cost of food in New Zealand. Recent studies of overseas changes to VAT rates have also shown that a significant portion of any GST rate cuts are not passed on to the end consumers. When you also consider spending patterns, any reductions that are passed onto consumers would provide the greatest dollar benefit to the highest-earning households who spend more.
Source: taxathand.com
Latest Posts in "New Zealand"
- New Zealand Mandates E-Invoicing for Public Agencies by 2026 to Enhance Efficiency and Transparency
- The Future of e-Invoicing in New Zealand: Peppol, PINT A-NZ and the 2026 Electronic Invoicing Mandate
- New Zealand Clarifies GST Treatment for Accommodation in Newly Constructed Commercial Dwellings
- New Zealand Inland Revenue Clarifies GST Liability and Penalties on Property Disposal for Partnerships
- GST Ruling: Commercial Dwelling Status and Input Tax Deductions for Accommodation Supply