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ATO report confirms low compliance costs for Wholesales Sales Tax (WST)



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MEDIA RELEASE

A -441SW -Acd-`• Hon Gareth Evans QC MP Deputy Leader of the Opposition and Shadow Treasurer 24 February 1998

ATO REPORT CONFIRMS LOW COMPLIANCE COSTS FOR WHOLESALE SALES TAX (WST)

The Report into Tavayer Costs of Compliance released today by the ATO is further evidence that the Government's proposal to replace the WST with an all-embracing GST just doesn't make sense.

Far from being an outdated revenue source as claimed by Mr Costello, the WST is shown in the report to be relatively cheap for taxpayers to comply with.

The report makes the statement (at page 56) "... WST (4.7%) systems impose relatively low compliance costs as a proportion of the revenue generated."

This is hardly evidence to support the claims of complexity and inefficiency alleged by the Treasurer.

There is no doubt, that as well as being unfair, the GST will massively increase compliance costs for business, and small business in particular. Today's report confirms that one of the virtues of the existing WST system is that it is relatively cheap to comply with. No amount of dissembling by the Treasurer can change that.

Contact: Chris Fry (02) 6277 4045

COMMONWEALTH PARLIAMENTARY LIBRAR/

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