Parliament

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

 

UF Maintains Pressure To Cut Company Tax Rate

Media statement
For immediate release

Tuesday, October 01, 2002


United Future Maintains Pressure To Cut Company Tax Rate

United Future New Zealand continues to argue that the Government should reduce the corporate tax rate from 33 per cent to 30 per cent.

The party’s tax spokesman, Gordon Copeland, said today that in a list of twenty key priorities aimed at returning New Zealand to the top 50 per cent of the OECD, Business New Zealand places a reduction in the corporate tax rate at number two on the list.

“They advocate reducing the corporate tax rate in stages from its current 33 per cent to 25 per cent by 2005 and 20 per cent by 2010.

“United Future agrees and urges the Government to reduce the rate to 30 per cent within the current parliamentary term,” he said.

Mr Copeland said a reduction in the corporate rate also recognises the high compliance costs incurred by companies in collecting tax revenue for the Government.

“It costs the Government around $440 million to collect PAYE, FBT, income taxes and GST. It is not unreasonable to assume therefore that collectively, it also costs companies about that amount each year to collect and pay over those taxes to the Government.

“The costs are tax-deductible so, at the 33 per cent rate, the net costs to business would be around $295 million.

“At the current 33 per cent rate, companies are budgeted to pay $4.955 billion in tax during the current financial year. Accordingly a “compliance cost offset” at $295 million could be achieved by reducing the rate from 33 per cent to 31 per cent.”

“However,” Mr Copeland said, “why not round it down immediately to 30 per cent to bring the NZ corporate rate in line with our Australian neighbours?”

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Government: Northland To Move To Orange, NZ Prepared For Omicron


Northland will move to Orange at 11:59pm tonight, 20 January 2022, while the rest of New Zealand will remain at Orange as the Government prepares for Omicron to enter the community.
“Vaccination rates have continued to increase in Northland and are now at 89 percent first dose. The easing of the Auckland boundary over summer did not drive an increase in cases so we believe it is safe for Northland...
More>>

ALSO:


Gordon Campbell: On Responding To The Need In Tonga


The power of the Tonga eruption (and the size of the aid response being mounted) have been sobering indications of the scale of this disaster. The financial impact is certain to exceed the damage done by Cyclone Harold two years ago, which was estimated at the time to cost $US111 million via its effects on crops, housing and tourism facilities. This time, the tsunami damage, volcanic ash, sulphur dioxide contamination and villager relocation expenses are likely to cost considerably more to meet...
More>>



 
 



Science Media Centre: Omicron Outbreak Would Move The Country To Red - Expert Reaction

The Prime Minister has announced if Omicron cases spread into the community, the country will move to the traffic light system's Red setting within 48 hours. Jacinda Ardern also mentioned there will be changes to the country's testing regime, with more use of Rapid Antigen Tests... More>>


Government: New Zealand Prepared To Send Support To Tonga

New Zealand is ready to assist Tonga in its recovery from Saturday night’s undersea eruption and tsunami, Foreign Affairs Minister Nanaia Mahuta and Defence Minister Peeni Henare said today... More>>


Ministry of Health: COVID-19 Immunisation Starts For 5 To 11-year-old Tāmariki

More than 120,000 doses of the child (paediatric) Pfizer vaccine have been delivered to over 500 vaccination sites around New Zealand as health providers prepare to start immunising 5 to 11-year-olds tamariki from today, 17 January... More>>



Statistics: Departures Lift Border Crossing Numbers

The number of people crossing New Zealand’s border went up in November 2021, mostly due to an increase in departures, Stats NZ said today. There were 28,700 border crossings in November 2021, made up of 12,300 arrivals and 16,400 departures... More>>


Financial Services Federation: Open Letter To Government From Non-bank Lenders: The Path Forward On CCCFA Changes
Responsible lenders are not interested in telling the Government “I told you so” when it comes to unintended consequences of changes to lending laws that are now causing grief for everyday Kiwis seeking finance... More>>

CTU: Too Many Kiwi Workers Financially Vulnerable As Omicron Looms
With New Zealand on the precipice of an Omicron outbreak and the economic upheaval that comes with it, the CTU’s annual Mood of the Workforce Survey shows the vast majority of kiwi workers do not have the financial resources to survive a period of unemployment... More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels