by some can be offset by the overpayments of others to reduce/enhance the interest they pay/receive. Companies pay income tax at 28% on profits. Tax rates for individuals operating as a business (that is, individuals who are self-employed) are the same as for employees. (See individual tax rates, above.) Goods and Services Tax Goods and services tax (GST) is an indirect tax introduced in New Zealand in 1986. This represented a major change in New Zealand taxation policy as until this point almost all revenue had been raised via direct taxes. GST makes up 24% of the New Zealand Government's core revenue as of 2013. Most products or services sold in New Zealand incur GST at a rate of 15%. The main exceptions are financial services (e.g. banking and life insurance) and the export of goods and services overseas. All businesses are required to register for GST once their turnover exceeds (or is likely to exceed) $60,000 per annum. Once registered, businesses charge GST on all goods and services they supply and can reclaim any GST they have been charged on goods and services they have purchased. Fringe benefit tax Employers are liable to pay fringe benefit tax (FBT) on benefits given to employees in addition to their salary or wages (e.g. motor vehicles or low interest loans). There are several methods available for calculating FBT liability, including an option of paying a flat rate of 49.25% on all benefits provided. Excise duties Excise or duty is charged on a number of products, including alcohol products, tobacco products, and some fuels. Land taxes New Zealand makes a distinction between "land taxes" and "property taxes". The traditional concept of property tax may apply the same rate both to improvement values and to land values. A pure land tax exempts improvement values from taxation altogether and taxes only land values. A graded, dual-rate, or split-rate property tax applies a different rate to improvement values. The term "land tax valuation" is used to represent both its pure and partial forms. Conceptually, a property tax is a proxy for income tax - rightly or wrongly presuming that a certain level of property holdings indicate a certain ability to pay taxes on a regular basis. In contrast, an LVT applies to the land itself – taking into account its scarcity, immovability and centrality to human activity. Although the Land Tax Abolition Act (1990) which took