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


Business Tax Review - timid proposals

Media release

25 July 2006

Business Tax Review - timid proposals

The discussion document Business Tax Review proposes fairly timid moves towards improved business taxation, says Business NZ.

Chief Executive Phil O’Reilly welcomed the fact that the Review has picked up on Business NZ’s recommendation to move to a 30% corporate tax rate as a first step.

“But this should be a first step only. Business would like to see evidence of the Government looking beyond simple parity with Australia, to a situation where New Zealand’s rate is well below Australia’s, so New Zealand companies can compete more effectively. The Review lacks a strategy for further reductions, within a dynamic framework. What if Australia now drops its business tax rate below 30%? They could potentially do this even before these proposals are implemented.

“The Review appears to be looking at lower business tax as a cost, not a benefit. This is a fallacy. The evidence shows that lower business tax stimulates business growth, bringing a higher tax revenues as well as increased economic growth.

“It’s pleasing that payroll tax is now off the agenda, but most business will be concerned at the thinking in the Review on targeted tax credits. A targeted tax approach is picking winners by another name, with the potential to harm the robust, broad-based system we currently have. In the long run, this kind of proposed targeted regime could bring a lot of complexity for not a lot of benefit.

“Most New Zealand businesses are small and unincorporated - so the business tax level doesn’t relate to them at all. This Review therefore fails to address the over-taxation of thousands of small businesses that pay tax at the top personal rate of 39%. Reducing the business rate to 30% will not help their situation - a more integrated solution - of both business and personal taxes - is required.

“Business NZ will make submissions on this Review with the interests of all businesses in mind.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: 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>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news