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


National's proposed tax cuts good for growth

22 August 2005

National's proposed tax cuts good for growth

Today's announcement that a National-led government would lower the burden of taxation offers scope for improved productivity and growth, Business NZ says.

Business NZ Chief Executive Phil O'Reilly says New Zealand's tax levels have to be competitive internationally in order to grow the economy and provide a high standard of living.

"Reducing personal tax rates would provide incentives for individuals and families to get ahead by working hard, knowing that they will keep more of their earnings. This is preferable to turning a large segment of the working age population into beneficiaries. "The proposal to drop the company tax rate to 30% is also a welcome step towards improved competitiveness, although it would be preferable to make the change immediately rather than wait until April 2008.

"Carbon taxes would harm our ability to compete internationally, so it is positive to see a firm commitment not to impose a carbon tax.

"Overall, the policy is positive for growth, and we do not believe it would cause inflation. The reality is that increasing government expenditure is more likely to fuel inflationary pressures than tax cuts, since tax cuts would give more choices to individuals and families about how they used their money, either through savings, targeted expenditures or longer term investment."


© Scoop Media

Business Headlines | Sci-Tech Headlines


First Union On Mill Plans: Bitter Blow For Gisborne Workers

Up to 100 Gisborne jobs could go as JNL, the wood processing company, begins consulting on a proposal to nearly halve its workforce at its Gisborne mill. More>>


Employment:Slow Track For Most Contentious Labour Law

The government will announce a timetable for legislating a range of long-signalled labour law changes but is placing its intention to introduce new Fair Pay Agreement legislation on a slower track to allow consultation with both employers and trade unions. More>>


NZ's Space Programme: Rocket Lab's Successful Launch

Science Media Centre: Rocket Lab successfully launched its Electron rocket and deployed satellites into orbit Sunday afternoon, a milestone for the company and New Zealand's fledgling private space industry. More>>


BusinessDesk: Body massages and Uber are in, DVDs are out, says Stats NZ

Statistics New Zealand has rejigged the consumers price index basket in its latest three-year review, adding body massages, Airbnb and Uber and removing DVD and Blu-Ray players…More>>


StuffMe: Commerce Commission Welcomes Dismissal Of Merger Appeal

In a summary of their judgment released today, Justice Dobson and lay member Professor Martin Richardson dismissed the appellants’ process criticisms and found the Commission was entitled to place significant weight on the prospect of reduced quality of the products produced by the merged entity. More>>


Digital Futures: New Chief Technology Officer Role Created

Communications Minister Clare Curran has called for expressions of interest for the new role of Chief Technology Officer position to help drive a forward-looking digital agenda for New Zealand. More>>