20 December 2005

Timetable for business tax review

The government will release its Business Tax Review proposals for consultation by mid June at the latest, Finance Minister Michael Cullen and Revenue Minister Peter Dunne announced today.

“Although the scope of the review is still being considered, we envisage some very bold measures emerging. It will not be a matter of tinkering with the tax rules,” the Ministers said.

The review is a key part of the post-election confidence and supply agreements with United Future and New Zealand First and is aimed at giving better incentives for productivity gains and improved competitiveness with Australia.

“Lifting labour and capital productivity is critical to raising New Zealand’s sustainable growth rate and to restoring New Zealand to the top half of the OECD in terms of per capita income. The review will be integral to this process,” Dr Cullen said.

Mr Dunne reiterated his comment of last week that even though the slowing economy presented challenges for tax reform, the need to remain very competitive with New Zealand's biggest trading partner, Australia, made it essential that the process be wide-ranging and timely.

ENDS

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