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

 

Call for business tax rate cuts from next year

Media statement Thursday, October 11th, 2006

Call for business tax rate cuts from next year

The $11.5 billion surplus announced today is no measure of how well Government is handling the economy unless a sound strategy is in place to re-invest it for the longer term benefit of all New Zealanders, the Employers & Manufacturers Association says.

"An equitable way for some of the surplus to be re-invested would be to cut the business tax rate earlier than previously planned," said EMA's chief executive Alasdair Thompson.

"If the business tax rate is significantly lower than personal tax rates, the strong incentive will be for businesses to re-invest, not pass extra dividends through to their stakeholders which would incur higher personal tax payments.

"Cuts to business tax rates would greatly boost productivity growth by accelerating skills training and as businesses invested more in new plant and equipment.

"We urge the Government to start cutting business rates from April next year.

"New Zealanders want personal tax cuts too, but there is a reasonable concern that they would be inflationary.

"However, if personal tax cuts were brought in at the same time as KiwiSaver was launched, in July 2007, the inflationary impacts would be minimized as funds were channeled from tax cuts into savings, which is in line with Government's intentions."

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>

ALSO:

Crown Accounts: Govt Books In Line With Forecasts

The Government’s financial statements for the four months to 31 October indicate the books are tracking along with Treasury’s Budget forecasts, Finance Minister Grant Robertson says. More>>

ALSO:

Expert Reaction: Ross Sea Region Marine Protected Area In Force

Sweeping new protections for Antarctica's Ross Sea will come into effect on Friday 1 December. After five years of debate, the marine protected area (MPA) was agreed in 2016 after a joint proposal by New Zealand and the United States... More>>

ALSO: