That’s because GST at 15% is added to the KCDC amounts and gets passed to the central government.
There has been protest about this tax on a tax raised by some politicians before, but generally politicians at both the local and central levels like lots of tax money coming in so they can spend it for you.
So long as the central government does collect this money from local government areas, then we think it perfectly legitimate to expect the central government to assist with local projects.
In our response to local MP Nathan Guy’s questionnaire, we mentioned three things that the central government could assist with in Kapiti — the reservoir dam, the Waikanae level crossing underpass and extension of electric trains to Otaki (see earlier).
Will he take any notice? We’ll see.