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

 


Auckland Airport: North American Touch Downs Make AA Most Connected In Australasia
The return of American Airlines, the world’s largest airline, announced today has cemented Auckland Airport’s title as the Australasian airport with the most non-stop connections to the United States and Canada... More>>



Reserve Bank: Monetary Conditions Tighten By More And Sooner

The Monetary Policy Committee today increased the Official Cash Rate (OCR) to 2.0 percent. The Committee agreed it remains appropriate to continue to tighten monetary conditions at pace to maintain price stability... More>>


The Download Weekly: Vodafone FibreX back in court

Vodafone and the Commerce Commission head back to court over FibreX in a week the TCF issues broadband marketing codes that should avoid similar problems in the future... More>>



Kiwibank: Savers To Benefit From Higher Returns Following OCR Rise

Following market movements Kiwibank is pleased to increase the interest rate and rates of return on its savings accounts... More>>

Fonterra: Provides 2022/23 Opening Forecast Farmgate Milk Price & Business Performance Update
Fonterra today announced its 2022/23 opening forecast Farmgate Milk Price and provided an update on its third-quarter performance... More>>


Stats: Quiet Start For Retail In 2022
The volume of retail sales was relatively unchanged in the March 2022 quarter, following a strong increase in the December 2021 quarter, Stats NZ said today... More>>