GST Explained: Why Do We Pay It?

In New Zealand, GST, or Goods and Services Tax, is applied to almost all goods and services we buy. But why is GST charged in the first place? Simply put, GST is a major source of government revenue, helping fund essential services and infrastructure.

How Does GST Help New Zealand?

Every time you pay GST on a product or service, that money goes to the government. These funds support things like healthcare, education, roads, and public safety. In other words, GST helps keep New Zealand running smoothly by funding services everyone uses.

Why Is GST Applied Broadly?

By applying GST to most goods and services, the tax system is kept simple and effective. Instead of having many different taxes for different products, GST provides a consistent way to collect revenue across the board. This makes it easier for businesses to comply and for the government to manage.

Conclusion

So, when you see GST on a receipt, think of it as a contribution to the services and infrastructure that benefit all New Zealanders. It’s a small addition that makes a big difference in supporting the country.