A video circulating on social media explains the New Zealand Loyal Party’s 1% transaction tax policy.
The policy would see all existing taxes replaced by a single 1% transaction tax.
NZ Loyal’s 1% Transaction Tax policy is getting global interest @NZLoyal @LizGunn18 @COUNTERSPIN111 @RCR_NZ @TheBFD_nz @DailyTelegraph5 @NZStuff @nzherald @rnz_news pic.twitter.com/T7mKZ5CAnZ
— Kiwi4Justice (@Kiwi4Justice) September 26, 2023
Candidate announced for Hutt South
Born and bred Hutt man and electrician Jordan Blake will be standing for NZ Loyal in the Hutt South electorate.
‘We need a party that is for the people, by the people, that is made up of people who aren’t sell-outs,’ Blake told party leader Liz Gunn.
Announcing NZ Loyal’s candidate ☑️ for Hutt South – Jordan Blake pic.twitter.com/VxI4enNtDX
— New Zealand Loyal (@NZLoyal) September 27, 2023
Interesting concept. It will catch all transactions legal as well as criminal ones. Despite that there are some issues. How do we collect tax on purely cash transactions? They could be large if one sells a property valued at say $10M with a barrow full of cash. Does it apply to deposits and withdrawals from ones account? Where does the point of sale occur and who is responsible for the remittance of 1% to Govt? An independent financial system supported by Govt is key. That means banks, credit unions and credit card systems take responsibility for collection. Are government receipts and disbursements within the ambit? Poses the question why shouldn’t our govt apply 1% tax to receipts from international trade? That means clear determination on what is taxable and what isn’t. Stringent audit requirements are required. Transaction taxes are collected more promptly than GST– clearly an advantage. Formal Returns with penalties are still needed. Financial institutions must work closely with Govt. That means access to dealings with other governments and overseas clients. Would Govt accept that interference? Who knows but the concept deserves more thought.