Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

BUDGET 2016: No real tax-related surprises

BUDGET 2016: Big tax increase for smokers, but otherwise no surprises

There were no real tax-related surprises in the Budget, says Massey University tax expert Dr Deborah Russell, but smokers will be hit in the pocket.

The excise on tobacco will go up by 10 per cent in each of the next four years increasing the cost of a packet of cigarettes from $20 to $30 by 2020.

“Reducing smoking is an excellent public health goal, but higher prices could create a black market in tobacco,” Dr Russell says. “This could undermine any pubic health benefit.”

According to Dr Russell, another tax increase comes with the removal of some of the subsidies in the emissions trading scheme.

“Up until now, businesses have been able to buy two emissions units for the price of one. This was a measure to help businesses following the global financial crisis.

“By 2019, businesses will be paying the full price for each emissions unit – and this is a tax increase for many businesses. Of course, some won’t be affected because they are excluded from the scheme – for example businesses that are exposed to international competition, such as primary sector businesses.”

The biggest tax item in the Budget, Dr Russell says, is more spending on IRD’s new IT system.

“Having a better system will make it much easier for taxpayers to interact with Inland Revenue. This will be good for individual taxpayers, and for businesses. Anything that makes complying with tax law easier reduces costs for businesses, both bottom line costs, and intangible costs.”

This Budget also includes some tax measures to help small and medium-sized enterprises. The measures were announced last month and include making it easier to pay provisional tax, and reducing or even getting rid of some penalties and Use of Money Interest.

“While the amount of SMEs pay won’t go down, the measures should reduce the stress of paying tax,” Dr Russell says.

While there was no hint of tax cuts in the Budget, tax revenue is projected to increase by about $3 billion in 2018 and 2019.

“The Prime Minister suggested there might be tax cuts in the future. Perhaps these were the numbers he was looking at.”

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Coronavirus: On The Addiction To Chinese Student Fees, And A Possible Future For RNZ Concert

Last week, Australian PM Scott Morrison extended its ban on foreign visitors from or passing through from mainland China – including Chinese students - for a third week. New Zealand has dutifully followed suit, with our travel ban extending until next Monday at least, presumably dependent to some extent on what Morrison decides to do later this week.
Our universities are now asking for an exemption to the travel ban for their Chinese students, who would still, the universities assure us, be subjected to strict quarantine procedures upon arrival. Given how the inability of the university system to care for its own students on campus made world news last year, that promise may not do much to reduce the coronavirus fears among the wider New Zealand public. More>>


 

Water Woes: Wellington Reflects National Problem

Water utilities right across the country face major challenges to upgrade and maintain their underground three waters network. Water New Zealand’s Technical Manager, Noel Roberts says Wellington’s waste water woes are not unique to the capital city. ... More>>

ALSO:

2020 And Beyond: National’s Economic Plan

National Leader Simon Bridges has today outlined National’s economic plan heading into election 2020. “National understands the economy and how it impacts on New Zealanders day to day lives... More>>

ALSO:

Abortion Legislation Committee: Abortion Bill Report Presented To The House

The Abortion Legislation Committee has presented its report on the Abortion Legislation Bill to the House. A copy of the report is available here. The bill seeks to have abortion services provided like other health services... More>>

ALSO:


Local Government NZ: New Report A Pathfinder For Affordable Housing

A report released today by LGNZ provides a roadmap for councils finding their way through the complex policy, regulatory and market tools available to help enable more affordable housing developments for New Zealanders. With demand soaring, rents ... More>>

ALSO:

“Can Do Better”: Sallies Election Year Report Card

This year’s State of the Nation report by The Salvation Army offers a mixed bag of outcomes, with some significant headline progress - but also an ambitious list of “can do better”. Government action is delivering limited improvements... More>>

ALSO:


 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels