Time Is Right For Company Tax Cut - Business NZ

Tuesday, 1 May 2001, 10:07 am
Press Release: Business New Zealand

Business NZ chief executive Simon Carlaw says the time is right for a cut in company tax.

"There is excess surplus in the Government's accounts over and above that earmarked for the superannuation fund this year. Given that most of the increase in the surplus has come from higher than expected company tax, it is appropriate to consider lowering the company rate now. There is sufficient lead-in time for such a move to be introduced in next month's Budget.

"The business community has consistently called for a more competitive tax rate in business forums and other exchanges with the Government. With our main trading partner and competitor Australia moving towards a 30% company tax rate, it is clearly in our interest to adopt that rate also.

"Analysis by Treasury and Inland Revenue shows that cutting the rate will lead to more investment in business, more growth and improved tax revenues.

"No doubt the Government will wish to choose the most advantageous time to implement some of its plans arising from the forums. Business NZ's view is that the time for a cut in company tax is now," Mr Carlaw said.

Contact Simon Carlaw, Business NZ 04 4966555 or 025 545472, home 04 4767729

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