Gst means Goods and Services Tax. Here in New Zealand the Goods and Services Tax is 12.5% on all goods and services. You the ordinary person on the street do not get any of this tax back. This tax is over and above all other taxes already on your goods etc.
If you are in business the smart thing to do is to become gst registered this way you can get at least some of this tax back but at a cost.
Gst is policed by the person in business. They are required to place 12.5% on top of all goods and/or services they have so that the customer pays this tax on everything concerning that said business be it the grocery bill, power bill, phone bill, petrol, eating out, building a house, whatever. Every few months the business person has to work out how much gst they are to pay to the Tax Department. For most people this takes days as they are not accountants and not all businesses can afford to have an accountant to work it out for them.
The Governments incentive to the employer to do all of this extra work and stress is that they receive a percentage of that tax back. On the surface this appears to be a good deal to the business person but in the workings of this its not really due to the time involved in policing it to the time involved in working it out, filling out the necessary forms, including the filling out of the cheque and mailing it to the Tax Department. Then the stress as to whether or not you have done it correctly dictates as to whether or not you have to pay more tax.
Some Businesses do not always have this money as they like the Government look at the amount in the bank and believe that this is what they have and do use it on bills, wages, equipment, etc, and then panic when they realise that they have spent the tax they were meant to pay the Tax Department.
Now What Does GST actually mean to the Person on the Street?
These are examples of Gst.
Lets say you spent $8000.00 on Groceries for the year. This does not include alcohol nor cigarettes just the basics. $8000.00 less 12.5% gst equals $1000.00 gst You Paid. That means $1000.00 dollars worth of food not on your table.
Lets say you spent $2000.00 on Petrol for the year. This does not include going on long trips just short journeys as petrol keeps going up. $2000.00 less 12.5% gst equals $250.00 gst You Paid. That means $250.00 dollars worth of Petrol not in your car.
Lets say you spent $2500.00 on Power Bill (electricity). $2500.00 less 12.5% gst equals $312.50 gst You Paid. That means $312.50 worth of electricity not being used by you to run your lightening, heat, air conditioning etc.
Lets say you spent $2400.00 on Phone Bill. $2400.00 less 12.5% gst equals $300.00 gst You Paid. That means $300.00 worth of phone calls to friends and family you don’t get to do.
Gst is on every thing from buying a nail to going to the dentist, doctor, garage to get your car fixed, having work done on your home or property.
Gst – Goods and Services Tax is a Tax that you the Ordinary Person on the Street do not ever get to use nor do you get it back. It is an Expensive Tax to the Ordinary Person on the Street as it removes alot of money out of your pocket which could have been used to feed, cloth, health care, educate, communication, electricity, travel etc for you and/or your family.
Australia has just recently brought in Gst. How long before other Governments bring it in under the gise that it will Benefit the People.
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