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

 

Tax Reductions are Welcome but More Needed

Media Release

22 May 2008


Tax Reductions are Welcome but More Needed to Boost Growth

The Wellington Regional Chamber of Commerce has welcomed the tax reductions in today’s Budget but says some tougher decisions in the area of government spending were needed to make the cuts fully sustainable.

“Today’s tax package will go some way towards improving our international competitiveness and making New Zealand a more attractive destination for capital and people but it is not enough to fully transform the economy. Most of the expenditure described as economic transformation is frankly a joke in this context,” said Chamber CEO Charles Finny.

“Upgrading Eden Park and buying Toll is not going to transform the New Zealand economy in the way the Chamber thinks it should.

“We are disappointed the opportunity was not taken to further reduce overall expenditure growth by further improving the quality of government expenditure and eliminating waste in non-productive expenditure thus making further tax cuts affordable. The ratio of Government spending to GDP continues to grow.

“We also would have preferred more of an emphasis on reduced tax rates as opposed to threshold adjustments. The differential between the company rate and the top rate of personal tax is far too high.

“While today’s budget should not delay a reduction in the official cash rate this year, we are concerned that the increase in government expenditure will keep interest rates and the dollar higher and for longer than should be the case.

“We are pleased the government has demonstrated its commitment to broadband and fibre but we would have liked to have seen more investment in infrastructure across the board.

“We think the government has some policy the wrong way round. Compare for example the amount spent on the Toll purchase with the amount to be invested in improved new rail infrastructure.

“The IRD changes to lower tax compliance costs including the higher tax return thresholds will be welcomed by small and medium sized businesses. The international tax changes are also very positive, as are the skills training initiatives,” Mr Finny concluded.


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO: