Seymour calls on Government to remove Iwi tax exemption

Press release: ACT New Zealand
March 7, 2016. 3:45pm

ACT Leader David Seymour has congratulated Go Bus for their significant contract win, picking up four South Auckland public transport contracts.

However it is also a demonstration of how lower tax rates make businesses competitive. “As an Iwi-owned trust, Go Bus receives favourable tax treatment,” says Mr Seymour.

“The 28 per cent company tax rate means that New Zealand companies pay one of the highest effective tax rates on capital in the world, even allowing for imputations. Iwi pay the lower Maori Authority rate of 17.5 per cent.

“ACT’s policy is to harmonise the company tax of 28 per cent with the Maori Authority rate of 17.5 per cent over time.

“Lower company taxes could be achieved by axing corporate welfare, but Steven Joyce is obsessed with taxing some businesses to hand out money to others so profitable businesses and handing the proceeds to unprofitable ones.

“Go Bus succeeded against its competitor in part because it faces a lower tax burden. Imagine what New Zealand businesses could do if they faced lower taxes than their international competitors.”

ENDS

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