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UF calls for a fair deal for small business

Media statement

For immediate release

Tuesday, 10 September 2002

United Future calls for a fair deal for small business

The United Future New Zealand Party wants small businesses in New Zealand to get a fair go from the Labour coalition Government.

“Small businesses make up the vast majority of employers in New Zealand,” United Future’s finance spokesman, Gordon Copeland, said today, “and they spend an incredible amount of time doing the Government’s work in collecting PAYE, GST, ACC levies, petrol, alcohol and tobacco excises, and Fringe Benefit Tax.

“We think the Government should repay them for that work by giving them a tax break, namely reducing the company tax rate to 30 cents.

“A recent Auckland accounting firm survey of small businesses showed that an overwhelming 81% of them cited compliance costs as the biggest obstacle to increased profitability.

“The Government claims it’s very concerned about reducing compliance costs on business, but it seems totally unwilling to help out small New Zealand businesses by reducing their tax burden,” he said.

“When I asked the Minister for Small Business in the House today if he would even consider reducing the tax, his blunt answer was ‘No’.

“That’s not good enough and I have today written to the Minister of Finance, Economic Development and Small Business asking them to give companies a ‘tax discount’ to offset the revenue collection costs they incur in support of the public purse,” said Mr Copeland.


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