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

 


Labour drops tax cuts in favour of $1.5B of new spending

Labour drops tax cuts in favour of $1.5B of new spending

Jan. 22 (BusinessDesk) – The Labour Party is ditching two of its flagship tax initiatives from the last election, giving itself an extra $1.5 billion for alternative policy promises.

Labour leader David Cunliffe announced the changes, which will see Labour drop its proposal to exempt fresh fruit and vegetables from GST and the first $5,000 of earnings from income tax.

The GST promise, while politically popular, was criticised by tax experts as creating a compliance minefield for retailers, while the $5,000 tax exemption threshold would have benefited wealthy people as much as low income earners while undermining one of the most reliable parts of the tax base.

Cunliffe said the changes would allow Labour “to create fresh opportunities for all New Zealanders.”

“As leader, I have been reassessing how to give Kiwis the best bang for their hard-earned bucks. We will be removing the previously proposed $5000 tax-free zone and the GST exemption on fresh fruit and vegetables.

“This decision frees up around $1.5 billion per annum,” Cunliffe said in a statement.

“While these were worthwhile policies, we believe there are better ways to help struggling Kiwi families.”

Some flavour of policies that could be funded by the revenue freed up by dropping both promises would be outlined in his State of the Nation speech next Monday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news