Fed: GST will target rich lifestyles, says Costello = 2

AAP General News (Australia)
02-01-2000
Fed: GST will target rich lifestyles, says Costello = 2

Mr Costello yesterday released a 327-page draft list of GST exemptions.

The list includes council rates, building applications, driver's licences, vehicle
and animal registrations, gun licences, passports, water, sewerage and divorce fees.

Mr Costello said today granting more GST exemptions would make the tax system more complicated.

Asked if granting more exemptions would put pressure on the 10 per cent GST limit,
he said: "The 10 per cent limit is fixed by an agreement between the six states, two territories
and the commonwealth.

"That will never move."

Mr Costello said the GST would get rid of the current complexities in the system, with
bureaucrats in Canberra having to rule on what wholesale sales tax to apply to goods.

"Not only do they have to make rulings as to the nature of the good but then they have
to decide under the current law whether it's taxed at 0, 12, 22, 32, 41 or 47 (per cent),
so one of the good things about having a flat rate is you don't have all that complexity
of the different rates," he said.

AAP sc/bar/de

KEYWORD: TAX COSTELLO 2 BRISBANE

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