Perfecting New Zealand's Consumption Tax System


  • Olena Khytko


This essay weighs up the efficiency of different forms of consumption taxes, and balances the positives and negatives to find the best approach for New Zealand. It considers the ease of use and low administrative cost of the current uniform consumption tax in New Zealand (GST). Conversely, the regressive nature and the effect it has on low income earners shows that it is not a perfect system. Possible improvements are put forward, such as imposing a zero tax on necessities, or compensating the poor with benefits. The conclusion reached is that GST is the most efficient system of consumption tax.


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Author Biography

Olena Khytko,