New Zealand government has shelved its proposal to impose the goods and services tax (GST) on KiwiSaver, New Zealand’s pension fund, less than 24 hours after it was put forward, following strong backlash from the public, the opposition party, and the fund sector.
Introduced to parliament on Tuesday evening, the tax was intended to “even the playing field” by standardising the tax on fees that are paid to KiwiSaver providers, which are not subject to GST. Currently, New Zealand’s GST stands at 15 percent.
Revenue Minister David Parker said the Treasury and Inland Revenue had advised the change to “remove a loophole” used by large financial companies….