Letter to The Hon Bill English, Minister of Finance:
Dear Bill,
I want to raise an issue with you which I think is worthy of research.
We are a Western Democratic Society here in New Zealand; and also have a property owning philosophy as a nation, where the majority of us want to own our own homes. I find it unacceptable that as government complains about Local Government holding costs, it is in the same breathe passing on greater costs from which we have no alternative but to accept. Nowhere is this more relevant and glaring than in GST on Rates. As the GST is now a 15% tax on the total rate bill, it can be a significant amount of money.
Please explain to me and the general public as to why this is allowed. I know successive governments have just accepted the rule, but I repeat at 15%, it is a considerable amount of money for absolutely no benefit to the ratepayer home owner.
Worse still, the people on superannuation, wage and salary earners pay income taxes, and they do not pay GST on that income tax, so why should they have to pay a further tax to government on their property rates, with their after taxed income. Businesses and farmers can tax deduct their rates and it seems to me there must be an answer. The government takes the money, and lets Local government take the flack, when your GST is just a tax with no details as to where the money goes and what special services will be received for that payment, which is what local government has to do. It seems to me it is not a level playing field, and Central government should be accountable to.
I do implore you to do some research on this subject because I for one am looking for answers, and as we in Local government try to hold our costs, Government must play its part also. I admit I am no taxation expert, but it just does not make sense to me.
I and others look forward to your reply.

Cr Margaret Murray-Benge,
Kaimai Ward, Western Bay.