Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Tax cuts now - Business NZ


Media release
18 December 2003


Tax cuts now - Business NZ


The Government should take heed of calls to relieve some of the tax impact on businesses, individuals and economic growth, says Business NZ.

Chief Executive Simon Carlaw says tax cuts are affordable.

"Core Crown revenue is expected to remain around 34% of GDP for the next five years, well above Business NZ's recommended target of 30%. The operating balance is likely to be between 3-4% of GDP over the same period - that's a large and sustained surplus. Gross Crown debt is likely to fall to around 20% of GDP by 2008 and once the NZ Superannuation Fund is considered, the Crown will also have become a net lender."

And Mr Carlaw says the Government's growth predictions indicate that tax cuts are needed to provide the stimulus for the growth rates needed to reach the top half of the OECD.

"While growth is likely to remain around 3% for the next 5 years, put in per capita terms this will be more like 2% - insufficient to catch up to the OECD average let alone the top 10. This needs a greater growth promoting focus - including tax cuts.

"Our 33% corporate tax rate is already very uncompetitive against Australia's (30% and soon to be lower still) corporate tax rate. Similarly, our 39% top rate of personal tax kicks in at a very low threshold by international standards, giving New Zealanders, including many small businesses, a heavier tax burden than most. Recent petrol tax and border security fee announcements show that taxation is generally and steadily increasing, not decreasing - the opposite of what is happening elsewhere in the OECD."


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news