Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Government Flunks Red Tape Cutting Test

United Future leader, Hon Peter Dunne, says the Government has flunked a critical test of its commitment to cutting business red tape by failing to make changes to the Fringe Benefit Tax regime.

He says the Fringe Benefit Tax is an outmoded of mid 1980s tax policy which has long outlived its usefulness.

"FBT was introduced by the Labour Government in 1985 to deal with distortions in income packages arising out of the Muldoon Government's prolonged 1982-84 wage and price freeze."

"It was seen simply as a way of dealing with a particular problem of the time, and not as a specific revenue source."

"It was always acknowledged that FBT imposed additional compliance costs on business, and this was promoted as a reason why employers should seek to structure remuneration packages so that the FBT did not apply," he says.

Mr Dunne, a former Minister of Revenue, says the situation has changed significantly since the imposition of FBT and it was now time to abolish it altogether.

"It is has served its original purpose, and is now just an impediment to doing business."

"A signal that it is to be abolished would be a powerful indication of the Government's commitment to further tax simplification."

"However, by ruling it out with the same firmness the Prime Minister showed at Knowledge Wave Conference when she ruled business tax cuts to promote competitiveness showed that when the crunch comes, this Government's commitment to promoting a better business environment is worse than luke-warm," Mr Dunne says.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Mayor of Auckland: Alert Level Change Welcome News

Mayor Phil Goff says the government’s decision to move Auckland to Level 2 from 6am on Sunday will be welcome news for all Aucklanders.
“Moving strongly and quickly to contain this outbreak has once again proved effective in stopping the spread of community transmission and I thank all the Aucklanders who have followed the rules of Level 3 over the past week,” he says... More>>


Earthquakes: Tsunami Activity – Cancelled

The National Advisory issued at 2:48pm following this morning's earthquakes near the KERMADEC ISLANDS REGION is cancelled.
The advice from GNS Science, based on ocean observations, is that the Beach and Marine threat has now passed for all areas... More>>

Joint Press Release: Dirty PR Exposed In Whale Oil Defamation Trial

Three public health advocates are relieved that their long-standing Whale Oil defamation trial against Cameron Slater, Carrick Graham, Katherine Rich and the Food and Grocery Council has finally concluded and they are pleased that the truth has come out... More>>


Government: Next Stage Of COVID-19 Support For Business And Workers

The Government has confirmed details of COVID-19 support for business and workers following the increased alert levels due to a resurgence of the virus over the weekend... More>>


Government: Balanced Economic Approach Reflected In Crown Accounts

New Zealand’s economic recovery has again been reflected in the Government’s books, which are in better shape than expected.
The Crown accounts for the seven months to the end of January 2021 were better than forecast in the Half Year Economic and Fiscal Update (HYEFU)... More>>

Covid-19: Auckland Back To Alert Level Three After One New Community Case Revealed

Auckland will move to alert level three for a week at 6am tomorrow morning after two new Covid-19 community cases announced this evening could not be directly linked to earlier cases, the Prime Minister has confirmed.
The rest of the country will move to level two.... More>>

NZ Initiative: New Report Highlights How Our Housing Crisis Could Worsen If We Don’t Act Now

If New Zealand politicians thought the housing crisis in 2020 was bad, the worst is yet to come, warns a new report by The New Zealand Initiative. In The Need to Build: The demographic drivers of housing demand , Research Assistant Leonard Hong ... More>>

Parliament: Kiwi MPs Among The “Most Educated In The World”

New analysis of MP qualifications reveals New Zealand’s Parliament is one of the most educated and highest qualified in the world, and significantly more educated than Australia’s. The research, by Mark Blackham of BlacklandPR and Geoffrey Miller ... More>>




InfoPages News Channels