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Tax Deductibility For R&D Back On The Agenda?

“The suggestion that the Government has not closed the door on the issue of tax deductibility for Research and Development is welcome news for New Zealand manufacturers”, said Simon Carlaw, Chief Executive of the New Zealand Manufacturers Federation.

Mr Carlaw was commenting on the Prime Minister’s Friday speech to the Auckland Chamber of Commerce in which she stated that a planned review of the tax system may look at this issue further.

“If indeed the Prime Minister is serious in what she says then the important thing is to bring forward this aspect of the tax system review as quickly as possible. To do so would restore some confidence to the manufacturing sector that the Government is prepared to listen to genuine concerns. The present lack of business confidence, despite the current buoyant economic situation is in part attributable to concern over the direction of some of the Government’s policies as they impact on business.

“What would be useful now is a clear timetable for the review of the tax system, and far greater detail on its parameters than that currently available.

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