No Benefit for Biotech in Tax Policy Changes

No Benefit for Biotech in Tax Policy Changes

NZBio Media Release, 3 August 2005

Changes to tax policy meant to ease cash flow problems for technology firms selling patents fails to address a key issue raised by New Zealand’s biotechnology sector, NZBio CEO Brian Ward says.

“The value of biotechnology comes from a small number of very successful innovations. The legislation assumes that all technologies will result in successfully commercialised products, which is simply not realistic,” Mr Ward says.

“The policy changes do not take into account the fact that in many cases technology transferred between companies does not result in a successful product. Biotech companies are usually built on a portfolio of technologies and only the most promising leads are developed into applications.

“To impose a tax liability on patent sales is simply a tax grab at the expense of industry growth.

“NZBio is disappointed that the proposed changes do not address this key issue in a meaningful way and will have little real benefit to New Zealand’s biotechnology companies.”

ENDS

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