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

 


Grass Tax - It's Happened

Brian Connell
National Party Associate Revenue Spokesman

3 February 2005

Grass Tax - it's happened

The Labour Government's decision to slap a tax on new farm grass is another example of taxation running out of control, says National's Associate Revenue spokesman, Brian Connell.

He is commenting on the Minister of Agriculture's announcement that new grass and fertiliser will now be treated as capital and therefore will not be deductible if, in the IRD's opinion, it changes the nature of the farm activity.

"Instead of allowing the costs of grassing and fertilising to be expensed in the first year, it now wants all the costs of a conversion to be treated the same way - to be capitalised and then written off over the following years.

"This will have a significant negative impact on cash flow," Mr Connell says.

"Clearly, Michael Cullen is not satisfied with an accumulated tax increase of $34 billion since 1999 - an increase of 40% - so he has now instructed the Inland Revenue vultures to tax farmers' grass.

"The cost of converting to dairy farming is expensive enough without this additional slug. Now, sowing new grass is to be treated as capital.

"Rather than considering methods of reducing tax, the greedy Labour Government has its claw out again.

"How many more tax increases can Labour come up with? So far it's been more than 30, but this one must be the most bizarre," Mr Connell says.

Ends


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news