UN Report Challenges Fairness of NZ’s GST, which may disproportionately burden low-income households

A United Nations committee has raised concerns about the fairness of tax systems, particularly consumption taxes like New Zealand’s GST, which may disproportionately burden low-income households, women, and disadvantaged groups. The committee urges countries to adopt progressive tax policies, ensuring wealthier individuals and corporations bear a fairer share to reduce inequality and support economic, social, and cultural rights. Experts in New Zealand, including Thalia Kehoe Rowden from the Human Rights Measurement Initiative, argue that GST contributes to the country’s regressive tax system, while Deloitte’s Allan Bullot notes its efficiency in revenue collection despite some regressive traits. Green Party co-leader Chlöe Swarbrick highlights disparities, citing research showing the wealthiest New Zealanders pay a lower effective tax rate than average citizens, a problem echoed by international bodies like the IMF. The debate calls for a holistic review of New Zealand’s tax settings.