<P> Goods and Services Tax (GST) is a value - added tax or consumption tax for goods and services consumed in New Zealand . </P> <P> GST in New Zealand is designed to be a broad - based system with few exemptions . Exceptions that do exist include rents collected on residential rental properties, donations, precious metals and financial services . Because it is broad based, it collects 31.4% of total taxation, making New Zealand the highest taxed country in the OECD in terms of sales tax as a proportion of GDP . </P> <P> The rate for GST effective since 1 October 2010 is 15% . This 15% tax is applied to the final price of the product or service being purchased and goods and services are advertised as GST inclusive . </P> <P> GST was introduced by the Fourth Labour Government of New Zealand on 1 October 1986 at a rate of 10% on most goods and services . It replaced existing sales taxes for some goods and services . GST was a part of the economic reforms initiated by Labour Finance Minister Roger Douglas dubbed Rogernomics . GST was introduced in conjunction with compensating changes to personal income tax rates . </P>

What is the gst rate in new zealand