Why should we meddle with our successful GST model?
"Our single rate of GST across almost all goods and services, with minimal exemptions, is effective and administratively simple. We shouldn’t consider redesigning GST, for example removing GST on food or fruit and vegetables, because we would risk undermining this effective tax"
GST is a regressive tax, in that the less well off in society pay the same rate as the most well off for every product or service that they use. Creating exemptions for things that the less well off rely on, such as food (or fresh fruit and vegetables) would introduce complications, but it is not impossible as other countries such as Australia (which has a GST rate of 10% compared to our 15%) do it already.
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