Deferring tax cuts won't affect NZ's retailers

Media release

Newmarket Business Association

Thursday, 28 May 2009

Deferring tax cuts won't affect NZ's retailers

Auckland's leading retail district says the suspension of the 2010 and 2011's tax cuts will not affect consumption, because taxpayers would have been unlikely to spend the extra money on consumerables anyway.

"I think it’s fair to say the 1 October and 1 April tax cuts did not provide a measurable boost to retail simply because consumers have cut back their spending. People are very recession wary. A few more dollars in the back pocket won't actually get the cash registers ringing. In this recessionary environment people tend to hold on to any extra money or use it to pay off debt than spend it on consumerables," says Cameron Brewer, general manager of the Newmarket Business Association.

"Deferring the tax cuts is the prudent thing to do. Focusing on good economic management and stability will in the long term benefit business more than a couple of rounds of tax cuts. Kiwis know this and that is why they support Bill English's decision to defer the tax cuts," says Mr Brewer.

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