11 February 2005

Rates hike shows folly of GST on rates, say UF Auckland MPs

United Future's Bill to take GST off rates would have almost entirely eased the pain Auckland ratepayers are feeling now with their 11 percent rates hike, United Future's Auckland MPs Paul Adams and Bernie Ogilvy said today.

"It's bad enough that ratepayers face such hikes in a two to three percent inflationary environment, but when there was a Bill before the House last year that could have utterly eased that pain, it is more than a little galling.

"We strongly campaigned at the time on the basis that GST on rates is a tax on a tax, but for Aucklanders, it's now a case of a tax on a very high tax," they said.

"The people of Auckland are being hit very hard and each and every one of them should ask Labour, National and ACT why they all voted against GST being taken off rates, and Dick Hubbard might well ask the Local Government Forum why it couldn't get its act together to back the Bill."

ENDS

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