Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Low company tax rate sensible capacity building

Low company tax rate sensible capacity building instrument

Media statement
Wednesday, November 19th, 2003

Low company tax rate sensible capacity building instrument

Reducing the company tax rate is, as United Future points out in its support for it today, a useful way to build the capital base of our businesses, the Employers & Manufacturers Association (Northern) says.

"We think both National and United Future are setting their sights far too low in wanting the company tax reduced only to 30 per cent," said Alasdair Thompson, EMA's chief executive.

"New Zealand should be aiming to match the company tax rates of Canada and the UK for small businesses.

"We should be aiming for 20 cents in the dollar in say, six stages over the next 6 years.

"Under Tony Blair's 'Third Way' the company tax for small businesses is zero on the first 10,000 pounds of earnings and just 19% on earnings up to 300,000 pounds.

"Small businesses in the UK are defined for this purpose as those either employing less than 50 people and/or earning less than 2.8 million pounds and/or with balance sheet assets up to 1.4 million pounds.

"The main UK company tax rate is below New Zealand's at 30%. (

"Tony Blair's Labour government knows the important role played by small business and the disproportionately high compliance costs they have to meet.

"Tax on company earnings up to $200,000 in Canada is 12% with tax on earnings over $300,000 scheduled to go to 21% next year.

"New Zealand has the highest company tax rates in the OECD and Pacific Rim countries.

"The main reason for lowering them is to boost investment in wealth creating business for the benefit of all New Zealanders."


© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>