Labour’s capital gains tax a breath of fresh air for manufacturing

The Labour Party’s decision to introduce a capital gains tax of 15% is a breath of fresh air for manufacturing, says EPMU national secretary Bill Newson.

‘For too long we have seen speculative investment fuelling rises in property and house prices, while investment in New Zealand companies has languished,’ says Newson. ‘With a capital gains tax on the cards, we can at last see the possibility of diverting investment into productive sectors of the economy like manufacturing.’

Newson rubbishes the idea that a capital gains tax would stifle economic growth. “It’s just the opposite,’ he says. ‘New Zealand is the one that’s out of step on this. Every OECD country now has a capital gains tax, except us, Switzerland and Turkey.’

‘A capital gains tax certainly hasn’t got in the way of Australia’s economic growth,’ adds Newson. ‘Any proposal that helps channel investment back into manufacturing has got to be good for New Zealand workers.’

The EPMU strongly supports tax-based and other incentives that encourage the flow of investment into manufacturing, leading to increased exports, revenue and jobs for New Zealand workers.

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