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Kiss the GST exemptions goodbye



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NEWS RELEASE

ROGER PRICE MP EDERAL MEMBER FOR, CHIFLEY PARLIAMENTARY SECRETARY TO TI-{E MINISTER FOR DEFENCE

26 February 1993

KISS THE GST EXEMPTIONS GOODBYE

The people of Sydney's west won't be fooled by shoddy promises to

exempt meat, bread and fruit from a goods and services tax, said

Federal Member for Chifley, Roger Price.

"In other countries, people are sick of a GST. In Canada the GST

has been an economic disaster and brought down their Prime

Minister," said Mr Price.

"In Britain, where their GST rose from 10 per cent to 17.5 per

cent, the Government is planning to widen the GST to tax

previously exempted items such as basic food and children's

clothing.

"Whenever you hear a Liberal say that the GST is well accepted in

other countries just cast an eye at both the 'Canadian and British

experiences with the GST," said Mr Price.

The British Government is planning to broaden it's GST to

combat a worsening budget deficit. COMMONWEALTH PARLIAMENTAR Y LIBRARY ..../2

MICAH

PHONE: 6 5-4344 — Fes.: 832-2641

UST EMAPTIONS/

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"When pressed into a corner the British have been forced to, tax

more things - don't be fooled into thinking a. Liberal Government

won't do it either.

"In consumer law a key term is 'buyer beware`. With Liberal

election promises perhaps it, should be 'voter beware'.

"Based on Treasury calculations, the Liberals already have a

funding shortfall in Fightback to the tune 'of $6 billion.

"The Liberals also claimed to pay for the changes in Fightback Ii,

such as not imposing GST on basic food, by selling Telecom for

$20 billion. Many commentators agree with the Government that

the sale of Telecom would only fetch $12.5 billion - $7.5 million

less than the Liberals' price.

"This provides only half of the money the Liberals need to pay for

the extra funding programs in .Fightback II..

"This shortfall only -widens the original $6 billion hole in

Fightback.

"The Liberals can either increase the GST, widen the GST to tax

essential food, or not deliver on their election promises.

"No doubt they would do all three!

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GST F EMPTIONS/

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Mr Price referred to a list of countries that had increased their

GST_ These countries included:

United Kingdom, where the VAT increased from 10%

to 17.5%;

New Zealand from 10% to 12.5% . in three years;

Germany from 10% to 14%;

Israel from 8% to 16%;

Austria from 8% to 20%;

Denmark from 1 .0% to 22%; Italy from 12% to 19%;

Mexico from 10% to 1.5%;

Uruguay, from 14% to 22%.;

France from 135% to 18.6%;

Niger from 12% to 25%;

Netherlands from 12% to 18.5%;

Brazil from 15% to 17%; .

Equador . from 4% to 6%;

Haiti from 7% to 10%;

Honduras from 3% to 7%,

Luxembourg from 8% to 12%;

Portugal from 16% to 17%; and

Turkey . from 10% to 12%;.