Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Tax change liberates more funds for research

Tax change liberates more funds for research

The New Zealand subsidiary of the pharmaceutical company, Merck Sharp and Dohme will get a 12.5 percent boost to their research budget under proposed tax law changes.

The changes are part of a package of GST reforms contained in the Taxation (Annual Rates, GST and Miscellaneous Provisions) Bill currently before the Finance and Expenditure Select Committee.

"They zero rate services provided to non-residents in relation to exported goods and also information services provided to non-residents that involve goods in New Zealand," Revenue Minister Michael Cullen said.

“All companies providing these types of services will benefit from the changes. For example, testing food products for export will be zero-rated, delivering considerable cost savings to business.?

Merck, Sharp and Dohme welcomed the changes this week as an example of the ?leadership role politicians and policy advisors can play in building the knowledge economy we all want in New Zealand?

The company told the select committee that the roughly $300,000 savings they expected to make as a consequence of the change would be ploughed back into research.

"They also plan to hire another tertiary qualified researcher and expect to be more competitive in bidding for new research contracts from their parent company as a result of the tax change," Dr Cullen said.

ENDS



© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Discussion Doc: National's Primary Sector Plans

Today National has released our third discussion document, this one on the primary sector. It showcases our positive and innovative approach to what is the backbone of our economy, Leader of the National Party Simon Bridges says. More>>

ALSO:

Govt Adopts Working Group Plan: Unions Welcome Film Industry Collective Bargaining

The announcement today by the Minister for Workplace Relations and Safety Iain Lees-Galloway, to support collective bargaining for those working in the film and screen industry, is welcomed. More>>

ALSO:

Greenpeace: New Oil Rig Arrives

A drill rig commissioned by oil giant OMV has arrived in New Zealand, a little over a year after the Government issued a ban on new oil and gas exploration permits... More>>

ALSO:

Proactive Non-Release: Housing Minister Says Unpublished Meeting 'Not A Secret'

Housing Minister Phil Twyford says an error from his office meant a meeting with another minister and the Auckland mayor was not included in his publicly released diaries. More>>

ALSO:

'Signalling Urgency': Auckland Council Declares Climate Emergency

“By unanimously voting to declare a climate emergency we are signalling the council’s intention to put climate change at the front and centre of our decision making,” says Mayor Phil Goff. More>>

ALSO:

Potential Disasters: Insurance Taskforce To Deal With Skyrocketing Premiums

Wellington Mayor Justin Lester said the group would look at how the insurance market was functioning amid massive premium increases, which have also led to claims the market is broken. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels