ALSTON, NCD, Sep 30 - The Ministry of Finance has announced that tomorrow's GST rise in New Zealand will not be passed onto citizens of the FCA.
A spokesman for the Ministry yesterday announced that "GST shall apply to the FCS, but it will be set at a rate of 10%. Of course, external expenses will rise due to outside GST rises, but within our borders, customers can expect to pay a flat ten percent rate."
Some have voiced their concerns that Andersonia may be at a disadvantage before it's even founded. A Times street poll found that some think that the Government would be wise to adopt the 15% rate, or 12.5% at the least.
"If Andersonia has its GST at 10%, then it means there'll be considerable snarl-ups when trying to manage finances between us and New Zealand" one said. "If we have our GST at 15%, then the only conversion we'll need is the 1.6 for the currency."
"We'll go around in circles" said another.
The Ministry is however defending its choice to keep the GST rate at 10%. "It means that customers can be satisfied they don't have to pay too much tax on their goods, and the Government gains some income out of it. We're not the only ones that have a lower GST rate, Canada has a 5% rate, Singapore has a 7% rate, and Australia has a 10% rate like the one we are intending to implement."
However there is a chance that the 10% rate may rise in the near future. "We're not ruling out a possible rise in the future, but it won't be too severe." There is some speculation that by the end of 2011 GST may rise to 12.5% or to the New Zealand rate of 15%.
The exchange rate between the simoleon and the dollar is unchanged.
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