The NZX has reported that average trades increased in value in October by 56% to an eye-watering $207 million – per day.
That is $207 million worth of share transactions each day that no GST is paid on. For reasons that have never been made entirely clear, financial services, unlike other goods and services, are exempt from GST.
The government claims it is strapped for cash, especially when it comes to spending on essential services such as health, education, infrastructure, and social welfare. With the record-breaking turnover on the NZX, surely it is time to look at taxing financial transactions. Continue reading