OECD right - tax system needs strategic direction

OECD right - tax system needs strategic direction

The New Zealand Institute of Chartered Accountants endorses OECD findings saying New Zealand's tax system needs a clearer strategic direction.

Institute tax director Craig Macalister says "the OECD report supports much of what we have been saying for a long time - the tax system should be broad-based and low-rate and therefore as simple and efficient as possible.

"Using the tax system as a mechanism to deliver other policy objectives risks complicating the system and introducing inefficiencies. This adds extra costs on to the taxpayer," Craig Macalister says.

"The OECD has suggested rebalancing the tax mix by increasing GST and lowering income tax. We think that is an option worth considering."

ENDS

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