> >I thought higher taxes hurt the economy!  Sounds like a viscous cycle
> to me.;)
>
> The beauty of VAT (or GST) type taxes is that they don't really hurt
> exports, as they are only applied on DOMESTIC CONSUMPTION.
> Businesses pay them, then claim BACK the amounts paid as input
> tax credits

GST (Goods and Services Taxes / Grab Snatch Take) is 12.5% in
NZ. I'm registered for it, even though by most reckonings I'm a very
small business (well hardly even a business, I'm just a self-employed
developer), and the rebate is a welcome bit of pocket money in
addition to buying at trade prices. It also means I can pass on that
lower price by excluding GST from the bill, which is a good will
gesture towards customers

But electronics aside, I think most people would feel a lot better
if GST was not applied to basics like bread, milk, kids clothes

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