13 Aug 2010

Labour denies GST pamphlet misleading

8:56 am on 13 August 2010

The Labour Party denies it is being misleading by referring to the upcoming increase in GST in taxpayer-funded pamphlets as "National's 15% GST".

Labour is distributing several hundred thousand leaflets which have been funded by the Parliamentary Service.

They list household bills such as power, food and rates with their pre-tax costs and then add what the pamphlet calls "National's 15% GST", rather than noting GST is increasing by 2.5% on 1 October.

A Radio New Zealand political reporter says this ignores the fact that those bills already attract 12.5% GST.

Labour denies this is a misrepresentation of the facts.

The Goods and Services Tax was introduced in 1985 by Labour at 10% and increased to 12.5% in 1989, also by Labour.

National says Labour is relying on misinformation to push a political message, but it has faith people will see the deception in the pamphlet.