Tax plan to avoid GST exemptions

They say that the new proposal to raise tax allowances for those on middle incomes by an extra 3.5% – a 3% rise is already proposed in the Budget – would undo the potential damage of the 3% GST on food, books, magazines, newspapers and childrens’ clothes. And they say that their proposal to raise Income Tax thresholds will target the extra money at the people who need it rather than every Islander rich or poor, and that it will save an ‘administrative nightmare’ of exemptions for the tax department and businesses.