Small Business Welcomes Government Tax Package

Small Business Welcomes Government Tax Package

The initiatives contained in today’s Small Business Relief Package will provide welcome relief for cash strapped businesses according to the Wellington Regional Chamber of Commerce.

“Cash flow problems are an increasing area of concern for small businesses in particular and the measures announced today are a pragmatic response to the extraordinary economic conditions we currently face”, said Chamber CEO Charles Finny.

“Adjustments to the provisional tax rules will give businesses more flexibility in the timing of their tax payments. This is will be extremely valuable to them in the current economic environment.

“The announcement comes as our latest business confidence survey reconfirmed the difficulties businesses are facing in managing their cash flows and this initiative will be a welcome respite.

“The tax compliance measures, including the higher tax-return thresholds, will reduce the number of transactions small and medium sized businesses have with the IRD and will be well-received.

“The directive to government departments to pay their bills promptly is something Wellington businesses have been talking to us a lot about recently and we are pleased the government has acknowledged our concerns. In a survey late last year 28.6% of businesses told us they have experienced such delays in paying invoices.

“We are also pleased that the government will allow the New Zealand Export Credit Office to provide short-term credit insurance for exporters. A number of our members have reported difficulties over payments for exports in recent months.

“All in all this is a well-timed package which will go some way towards relieving the pressure on business at this difficult time,” Mr Finny concluded.

END

© Scoop Media