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ACT's economic and tax policy recognises growth.

ACT's economic and tax policy recognises importance of growth.

ACT's economic and tax policy released today recognises that New Zealand must be internationally competitive if New Zealanders wish to improve their living standards over time, says Federated Farmers Vice-President Tom Lambie.

"It is only through improved efficiencies and competitiveness of the business sector that New Zealanders can obtain the income levels required in order to provide the sort of health, education and other services, New Zealanders aspire to," said Mr Lambie.

"ACT's policy recognises that a range of issues must be addressed in order to improve New Zealand's international competitiveness, particularly by addressing regulatory and tax burdens facing New Zealanders.

"Reducing the tax burden and moving progressively towards a low flat structure while retaining support for lower income groups will not only provide greater incentives for people to participate in the economy but will also reduce the massive compliance burdens associated with taxation.

"Progressively removing inefficient taxes, such as excise duties and the payroll tax to fund the ACC 'tail' are issues which the farmers and other businesses organisations have pursued for a number of years.

"It is encouraging that an increasing number of political parties are seeing the merits of a Regulatory Responsibly Act, to complement the Fiscal Responsibility Act and Reserve Bank Act. It is fundamental that any regulatory interventions are soundly based, to minimise the compliance and other costs associated with regulation.

"Farmers will be pleased with ACT's stated intent to refocus Local Government on core public good activities, rather than allowing them to forage into areas which results in higher rates burdens and unnecessarily expose ratepayers to commercial risk."

ENDS


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