Parliament

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

 

Tourism Industry Whacked With Retrospective Tax

Tourism Industry Whacked With Retrospective Tax Grab

Wednesday, September 12 2001 Rodney Hide Press Releases -- Taxation


ACT finance spokesman Rodney Hide says government MPs ' including the Greens -have seriously damaged the integrity of New Zealand's tax system and the stability of New Zealand law, with their backing in the Finance and Expenditure Select Committee of Michael Cullen's retrospective tax on inbound tourists operators, schools and universities.

"The extra tax on the tourist industry is estimated at $150 million and the extra on schools $50 million. This is a huge sum to claim retrospectively," Mr Hide said.

"This money has been taken unlawfully. Rather than give it back, this cash-strapped government is changing the law retrospectively so that it gets to keep it.

"This is legally, economically, and morally absurd. How can anyone pay taxes with confidence if the tax laws can be changed to a taxpayer's disadvantage back 15 years? The move is bad economically because it sends a signal that doing business in New Zealand is risky because this government shows itself to be prepared to raise taxes retrospectively. It is morally wrong because the money has been taken unlawfully and this government just won't up and admit it.

"The anomalies created are huge. Schools that never paid GST on foreign students won't have to pay it. Those who paid the GST but received their lawful refund by May 14 will get to keep their refund. But those who have paid the tax and have yet to receive their refund, will lose out. This is arbitrary, highly discriminatory and just plain unfair.

"Submission after submission was heard against this iniquitous piece of legislation. Dr Cullen's simple response was that he needed the money more than the taxpayers who it rightly belongs to. Government MPs on the select committee voted accordingly.

"Worse, they moved to toughen up the legislation. Originally, Dr Cullen had tried to soften the blow by declaring: "we're happy to make refunds if they are passing back to the original overseas customers, but they are not going to get a windfall gain out of this situation". But so desperate is the government for any cash it can grab, that even this modest concession has been wiped out by the select committee.

"This is a sad day for taxpayers in New Zealand. It's especially a sad day for the tourist industry which had no help from their Minister, Mark Burton, on this unfair and absurd tax grab.

The Taxation (Annual Rates, Taxpayer Assessment and Miscellaneous Provisions) Bill was presented to the House from the FEC today.

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

KiwiBailed: KiwiBuild Head Officially Resigns

The head of Kiwibuild, Stephen Barclay has officially resigned from the role. In a statement issued on his behalf, it was announced that he would step down from today [Friday].

Housing Minister Phil Twyford's office said he would not be commenting on Mr Barclay's resignation as it was an employment matter. Last month, Mr Twyford confirmed that Mr Barclay had not been at work for a number of weeks. More>>

 

Welfare Stats: Rise In Hardship Numbers Shows Income Inadequacy

The latest Ministry of Social Development quarterly report show that a record number of people have received hardship assistance from work and income, with an additional 40,000 hardship payments made between September and December 2018, compared to the previous quarter of the same year... More>>

ALSO:

DHBs "Prepared": Junior Doctors Strike Again

The needs of acute patients will be met during tomorrow's junior doctor strike, a DHB spokesperson says... Almost 3000 junior doctors are expected to walk off the job, which will affect all DHBs apart from West Coast District Health Board. More>>

ALSO:

Gordon Campbell: On MBIE’s Social Media Scam

Given the ambit of MBIE’s work, almost any form of social activity could qualify as being part of MBIE’s brief, so the privacy threats posed by this training programme are extensive. The current oversight safeguards seem threadbare to non-existent. More>>

ALSO:

JusTrade: New Campaign For A 21th Century Trade Agenda

‘Critique is no longer enough. If anything is to really change, we need to step away from the existing framework and take a first-principles approach to rethinking what will work for the 21st century.’ More>>

Earlier:

Gordon Campbell: Thompson + Clark Are The Tip Of The Iceberg

How can we tell where and how any lines are being drawn? Oversight is not exactly robust. If it were, Thompson + Clark would have been out of contention for state security work ten years ago. More>>

Trainers: Taratahi Institute of Agriculture In Interim Liquidation

Taratahi employ 250 staff and this year has provided education to over 2500 students. Taratahi owns and manages 8 farms throughout the country. More>>

ALSO:

IPCA Report: Complaints About Deputy Commissioner Wallace Haumaha

The Authority has found that DC Haumaha acted improperly by approaching staff and others to provide information to support him to refute the allegations about his 2016 conduct, or solicited other staff to do so on his behalf... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels