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

 

Call for business tax rate cuts from next year

Media statement Thursday, October 11th, 2006

Call for business tax rate cuts from next year

The $11.5 billion surplus announced today is no measure of how well Government is handling the economy unless a sound strategy is in place to re-invest it for the longer term benefit of all New Zealanders, the Employers & Manufacturers Association says.

"An equitable way for some of the surplus to be re-invested would be to cut the business tax rate earlier than previously planned," said EMA's chief executive Alasdair Thompson.

"If the business tax rate is significantly lower than personal tax rates, the strong incentive will be for businesses to re-invest, not pass extra dividends through to their stakeholders which would incur higher personal tax payments.

"Cuts to business tax rates would greatly boost productivity growth by accelerating skills training and as businesses invested more in new plant and equipment.

"We urge the Government to start cutting business rates from April next year.

"New Zealanders want personal tax cuts too, but there is a reasonable concern that they would be inflationary.

"However, if personal tax cuts were brought in at the same time as KiwiSaver was launched, in July 2007, the inflationary impacts would be minimized as funds were channeled from tax cuts into savings, which is in line with Government's intentions."

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:

Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>

ALSO:


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing

ALSO:

House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO: