Why we pay tax?

March 19, 2019

Have you ever wondered who pays for our roads, schools, hospitals or police officers? The simple answer is that we all do. All New Zealanders pay tax on their income, businesses pay tax on their profits, and every time someone buys something they pay a 15% “Goods & Services Tax” (GST). This is what keeps the wheels of Government turning and supports important services for our communities.

While the tax system brings in millions of dollars every year, it is important to remember that every dollar that the Government spends is a dollar that a tax payer has worked for so we need to make sure they are spent wisely and see value for their tax dollar. People are happy enough paying taxes to keep our roads paved and our hospitals open – but I don’t think people would be too happy if we used taxes for something like buying Ferraris for all of our friends!

While all politicians agree that some level of taxation is required, a key point of difference between political parties is about at what level tax should be set and what should be taxed.  For example, it has sometimes been discussed whether a tax should be applied to unhealthy things like sugary drinks to make them more expensive for people, particularly young people, to buy. Similarly, it is sometimes discussed whether we should remove GST from health food like fresh fruit and vegetables to make them more affordable.

Todd Muller
MP for Bay of Plenty

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Todd Muller

About Todd Muller

Todd Muller is the MP for Bay of Plenty. He writes a weekly article for the Kiwi Kids News website. Todd Muller was born in Te Aroha and raised in Te Puna. He attended Tauranga Boys College before earning his Masters Degree from Waikato University. He is a former Waikato University Councillor, and sat on the Boards of Plant and Food Research and the Sustainable Business Council. Todd is married to Michelle and is father to their three children, Aimee, Bradley, and Amelia.

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to give the gavament money


It is good to know


I think that kids should be taught about tax because we are all going to pay it someday


no tax


instead of teaching us history at school we should be learning to vote for the right prime minster or teaching us about tax and the important stuff you know?