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

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news