UK Budget Cuts Corporate Tax Rate to 17%

UK Budget Cuts Corporate Tax Rate to 17%

Delivering his sixth budget overnight, UK Chancellor of the Exchequer, George Osborne, has announced that the British corporate tax rate will be reduced to just 17%, further highlighting the relatively high 28% New Zealand company tax rate to the rest of the OECD.

Speaking from the World Taxpayers’ Association conference in Berlin, Germany, Jordan Williams, the Taxpayers’ Union Executive Director says:

“Company taxes are the most destructive from an economic and living standards point of view. George Osborne shows the way forward for New Zealand, recognising that corporate tax cuts boost the economy, create jobs and in the long term boost government coffers.”

“In 2010, British and New Zealand companies both paid 28% tax on profits. Now, British companies pay only 20% and will soon be paying 17% while New Zealand has stood still. It shows the stark contrast between David Cameron’s focus on ensuring competitiveness while the Key government has stood still.”

Analysis by the Taxpayers’ Union shows that if the New Zealand Government abolished its programmes of corporate welfare the company tax rate could be reduced from 28% to 22.5% without any impact on other areas of government spending.

“A lower company tax rate would mean greater competitiveness for all New Zealand businesses, more employment and better economic opportunities for Kiwis to get ahead,” concludes Mr Williams.

ENDS

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