The government’s draft value-added tax (VAT) legislation needs “substantial” changes, New Zealand VAT expert Don Brash said yesterday.
Brash, of Brash Consultancy Services, said a major issue that should be revised is the “huge” list of exemptions included in the draft bill.
He said fellow New Zealand VAT expert John Shewan has listed 15 to 20 points that the government can improve on along with examples from New Zealand’s VAT laws. The suggestions are included in the experts’ report that was given to the government.
He explained that a VAT system with a lot of exemptions makes the tax “vastly more complicated”.