Falling business confidence shows need for u-turn on tax
29 MARCH 2019
FOR IMMEDIATE RELEASE
With the business sector spooked, the Government should be planning tax relief, not an economically damaging capital gains tax, says the New Zealand Taxpayers’ Union.
Taxpayers’ Union Economist Joe Ascroft says, “It’s not surprising that ANZ’s Business Confidence Index shows firms are feeling even more pessimistic now than at the end of the last year, given that the Tax Working Group proposed an unfair capital gains tax that would be the most aggressive in the world.”
“It’s not just the threat of the capital gains tax itself. Businesses will be preparing themselves to hire valuers and putting in extra time with their accountants to ensure all of their business structures are in order. Cancelling the capital gains tax would ensure businesses could invest in growth, rather than watching their accounts get drained by compliance costs.”
“With the economy cooling, the Government should shelve the Tax Working Group’s proposal and signal an alignment of our 28 percent company tax rate to match Australia’s 25 percent by 2021.”
ENDS