INCREASING the Goods and Services Tax (GST) to 15 per cent would have a detrimental effect on regional businesses, says the president of the Bathurst Business Chamber Stacey Whittaker.
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Earlier this week, the federal government announced it is open to the possibility of increasing the GST to 15 per cent in addition to broadening its base to include fresh food, education and health.
Following reports last week four GST options were under consideration by the government, Prime Minister Malcolm Turnbull confirmed that a higher GST was an “option on the table”.
The four options that have been canvassed include three with a 15 per cent GST rate and one with a 12.5 per cent rate.
The first option is for a 15 per cent GST with no exemptions, the second is a 15 per cent GST with food exempted and the third option is a 15 per cent GST exempting food, education and health.
Mrs Stacey Whittaker said a GST increase would be nothing more than an added tax burden on local business.
“At the end of the day it will be passed on to consumers, but in regional areas, things are already very tight as they are,” she said.
“It will increase the prices of things, with people in the community ultimately paying more.”
Mrs Whittaker said regional businesses were already struggling to compete with offshore and online purchases.
She said she thought there were better options the government could take rather than increasing the GST. One suggestion was a tariff on imported goods purchased online.
Mrs Whittaker also suggested an overhaul of the social security system.
“We’ve got pensioners who have worked and paid tax their whole lives trying to survive on virtually nothing and third generation welfare recipients who just keep getting handouts,” she said.
She also supported the idea of higher luxury taxes and tightening loop holes which allow the wealthy to pay less tax.
She said there were many other options open to the government rather then targeting the “average person” and “businesses owners who are doing everything they can just to keep their doors open”.