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Hockey's latest rip off?, page-24

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kingpins

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28/03/15

13:16

Post #: 14997601
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Originally posted by pugsley100 ↑

True, the way it worked out with varying wholesale tax rates, after the GST introduction many goods were similar prices.
For example if you have an item costing $50 wholesale with 33.3% wholesale tax that made it $50 plus the wholesale tax of $16.65 plus say a 100 % mark up.
$50 plus $16.65 plus $50 markup = $116.65
Get rid of the Wholesale tax and replace with a retail tax
That's $50 plus $50 markup = $100 plus GST = $110

Goods like TV's and so on were taxed at a higher wholesale tax rate so came down in price.
Many services like freight and so on had no previous wholesale tax so cost more.
IIRC the average rate of total wholesale tax collected came in around 32%

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HI pugsley

But there were many things that did not have tax on them like labour which usually represents about half of most work and in the building industry made huge changes
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