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

 


Local body tax idea ‘a bit rich’, says Key

Local body tax idea ‘a bit rich’, says Key

April 15 (BusinessDesk) – Prime Minister John Key made it clear he is no fan of a push by the local government lobby to be allowed to raise local taxes other than through property rates, saying the proposal is “a bit rich”.

Local Government New Zealand proposed a new approach to funding local body infrastructure last week, arguing that property rates were becoming an anachronism and could put undue pressure on an ageing population who may have reduced income despite owning valuable rateable properties.

At his post-Cabinet press conference yesterday, Key said that “generally speaking, we’re opposed to that.”

“Our view is that it’s the purview of central government to be able to raise revenue in those forms.

“My concern would be if you started seeing ad hoc bed taxes and sales taxes and all sorts of other things being applied by local government, then they would naturally add cost to the economy and make us less competitive.

“We’d need to see really good justification for why they need so much extra revenue that they can’t currently raise through the rating base,” Key said.

He described as “a bit rich” the argument that there would be more “asset rich, cash poor” elderly home owners with an ageing population, who might struggle to pay rates based on property values.

“There are plenty of mechanisms for dealing with that,” said Key. “They can have a lien against property, they can defer taking their rates, they can have reverse mortgages. There are plenty of ways they could extract their pound of flesh but take it at a time when cashflow isn’t such a problem.”

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Wool Exports Jump To The Highest In More Than A Decade

New Zealand wool exports jumped to their highest level in more than a decade in June, aided by a lower currency and strong demand from China, the nation’s largest market. More>>

ALSO:

Surreal Estate: Home Values Rise At Fastest Rate In Seven Years

The latest monthly QV House Price Index shows that nationwide residential property values for July have increased 10.1% over the past year which is the fastest annual rate since 2007... The Auckland market has increased 18.8% year on year. More>>

ALSO:

New Employment Laws: Talley’s AFFCO Workers To Strike

The decision comes after the Talley’s owned company walked away from mediation last week and applied to end bargaining under the government’s new employment laws - the first such application since the law came into effect. More>>

ALSO:

Private Action: Employer Pleads Guilty Over Forestry Death

The CTU has always known that the death of forestry worker Charles Finlay was due to the poor health and safety practices of his employer... "The CTU, with the support of Charles’s family, needed to take this ground breaking private prosecution." More>>

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news