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 B2G e-invoicing for large suppliers from 2027
- Commissioner’s View on GST Taxable Activity Definition and Legal Interpretation
- New Zealand’s e-Invoicing Mandate: Transition, Compliance, and Benefits for Businesses and Government
- GST Ruling: Accommodation Supply in Commercial Dwelling and Input Tax Deductions Eligibility
- New Zealand Customs Updates GST Refund Process for Importers and Extends Application Period
