2010.08.1003:09:00UTC+00New Zealand Govt. Announces Amendments To GST Transitional Rules

New Zealand Revenue Minister Peter Dunne on Tuesday released details about amendments to the legislation to help businesses make the transition to the new 15% Goods and Services Tax rate by October 1.

The recommendations, approved by Cabinet yesterday, came from the GST Advisory Panel, which was established in May to identify issues businesses will face in implementing the new rate, and come up with potential solutions.

Dunne said the transition was more complex this time than in 1989 when the rate was last raised. According to Dunne, the main areas of concern related to situations where the supply of goods or services straddled the effective date of the new rate.

"The proposed changes will ensure that the legislation better takes into account business practice, removes excessive compliance costs in particular cases or removes an unfair outcome for the business or customers concerned," Dunne said.

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