Wellington Business says NO to Carpark Tax

Media Release
14 March 2013

Wellington Business says NO to Carpark Tax

The Government should seriously re-think its proposal to introduce a fringe benefit tax on car parks given to employees in the Wellington CBD as part of their remuneration, says Wellington Employers’ Chamber of Commerce Chief Executive Raewyn Bleakley.

“There’s no doubt that this tax would have a negative impact on business while raising a relatively small amount of tax.

“If estimates are correct that it will result in about $30 million in compliance costs to business for a $17 million return to the Government, then what is the point of it?

“And those compliance costs would come on top of a series of costs being proposed on business at present and at a time when all business is struggling along with the flat economy.

“Bill English says it would be unreasonable to have a tax where compliance costs are really high, and it would. This would be just another compliance cost that business would have to bear.

“I thought this Government believed in less red tape and lower compliance costs.

“There is also a fear among some businesses that because the tax is targeted at car parks in the CBD it could, over time, drive businesses out of the city as parking becomes more expensive and they are unable to attract workers.

“That could make the CBD less attractive to workers and that’s the last thing Wellington wants.

“We have a vibrant CBD because of the people who work there. Drive them away and we stand to lose a lot of our appeal to tourists and other businesses.

“It could also make the task of attracting new businesses to the CDB more difficult – for example, Contact Centres Australia which recently announced its first New Zealand call centre in the CBD, creating about 100 jobs by July and up to 200 within two years. Such announcements could become a thing of the past if we make it more difficult for businesses to set up and to attract staff.

“If Bill English is genuine in what he says then the Government should rethink this, given the relatively small amount of revenue, the negative impacts, and the reaction from business.”

ENDS

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