Parliament

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

 

Tourism Industry Whacked With Retrospective Tax

Tourism Industry Whacked With Retrospective Tax Grab

Wednesday, September 12 2001 Rodney Hide Press Releases -- Taxation


ACT finance spokesman Rodney Hide says government MPs ' including the Greens -have seriously damaged the integrity of New Zealand's tax system and the stability of New Zealand law, with their backing in the Finance and Expenditure Select Committee of Michael Cullen's retrospective tax on inbound tourists operators, schools and universities.

"The extra tax on the tourist industry is estimated at $150 million and the extra on schools $50 million. This is a huge sum to claim retrospectively," Mr Hide said.

"This money has been taken unlawfully. Rather than give it back, this cash-strapped government is changing the law retrospectively so that it gets to keep it.

"This is legally, economically, and morally absurd. How can anyone pay taxes with confidence if the tax laws can be changed to a taxpayer's disadvantage back 15 years? The move is bad economically because it sends a signal that doing business in New Zealand is risky because this government shows itself to be prepared to raise taxes retrospectively. It is morally wrong because the money has been taken unlawfully and this government just won't up and admit it.

"The anomalies created are huge. Schools that never paid GST on foreign students won't have to pay it. Those who paid the GST but received their lawful refund by May 14 will get to keep their refund. But those who have paid the tax and have yet to receive their refund, will lose out. This is arbitrary, highly discriminatory and just plain unfair.

"Submission after submission was heard against this iniquitous piece of legislation. Dr Cullen's simple response was that he needed the money more than the taxpayers who it rightly belongs to. Government MPs on the select committee voted accordingly.

"Worse, they moved to toughen up the legislation. Originally, Dr Cullen had tried to soften the blow by declaring: "we're happy to make refunds if they are passing back to the original overseas customers, but they are not going to get a windfall gain out of this situation". But so desperate is the government for any cash it can grab, that even this modest concession has been wiped out by the select committee.

"This is a sad day for taxpayers in New Zealand. It's especially a sad day for the tourist industry which had no help from their Minister, Mark Burton, on this unfair and absurd tax grab.

The Taxation (Annual Rates, Taxpayer Assessment and Miscellaneous Provisions) Bill was presented to the House from the FEC today.

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

© 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>>

ALSO:


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>>

ALSO:


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>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels