National Backs R&D Tax Credit Drop

October 17, 2008 New Zealand FinanceNew Zealand Taxation  No comments

Speaking for the National Party on the 17th of October, National MP Paul Hutchison, backed and attempted to justify his parties plan to abolish the tax credit for research and development in New Zealand.

Since the announcement of their tax plan, the National Party has been receiving a lot of criticism from both the public and groups like the New Zealand Manufacturers and Exporters Association, along with business relying on their research and development tax credit.

Paul Hutchinson, in a talk in Palmerton North, said that the research funded by the tax credit is not always of the highest standard, and that in the end, the tax credit has a “variable effect” and that firms would often reassign some of their previously followed activities as “R&D” to attain a credit. He went on to say that National plans to make sure that investment in science is of the highest level. The National Party plans to achieve this by putting $315 million in funding to universities and Crown Research.

Paul Hutchinson also revealed that National plans to abolish the current Fast Forward Fund for agricultural research and replace it with incentives for agricultural innovation.