I can't answer that Juju. What western countries have different tax rates for different sectors?
I support the reforms of the 1984-1990 Labour Govt, accepting not everything they got right.
The big problem as I see it is that we are controlled by the bureaucracy of local and central govt that apply a cost plus mentality to everything they do. On top of that the we are shafted by monopolies, duopolies and cartels that supply food , building products and fuel. Not much is done to break these down. Govt tenders are structures so the encumbents can not be challenged.
On a local note, this mornings Herald reported the " Kaikohe Tooth Fairy" fined $7k for repairing and making dentures without the necessary certification. I know the little hamlet this lady lives and works in and it is Northland poor, probably one of the poorest in NZ. Anyway, she was very skilled at making dentures and could do them for a third of the usual cost or less. Her customers were almost exclusively poor māori. Many of her customers were referred to her by WINZ and WINZ paid. However, some Northland dentists got wind of her activities and complained to the Ministry of Health that she was uncertified and eventually she was raided by them and Police hoping to squash her good work. She carried on and seems to have been made an example of to a degree.
I get there has to be rules and regulations but to me this is an example of a cartel ( dentists ) flexing their muscles to destroy this ladies work and theey have enough of their own. In fact, most dentists up here are now part of a nation wide franchise. The sad part is many of her customers can not afford dentists prices even with WINZ help. A better solution would have been to help her get the certification while still making her dentures.
Sorry for the rant but this is a small example of how people are ripped off by channeling customers to established entities.