Monthly Archives November 2008

John Key Concerned Over APD

November 27, 2008 International Taxation  No comments

Prime Minister John Key is showing more concern about the proposed Air Passenger Duty (APD) rise.

Prime Minister John Key has voiced his concerns in regards to the proposed tax raised levied on out bound flights from the UK. He specifically mentioned the prospect of other European countries emulating this scheme as a one of the largest concerns for him. As New Zealand will still be in an equally taxed distance from most European countries if similar schemes were implemented.

In a Radio New Zealand interview, John Key said that he personally told British Prime Minister Gordon Brown that the proposed APD system was not necessarily rational...

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Higher UK Departure Tax Proposed

November 26, 2008 International TaxationNew Zealand Taxation  No comments

Those flying from the United Kingdom to New Zealand will see a tax increase of as much as ?90 or $220NZD soon.

In the 2008 pre-budget report released on the 24th of November indicates that Air Passenger Duty (APD) is set to be raised by the British Government. As it stands at them moment the APD is ?10 for European destinations and ?40 for other destinations, in lower class, while all other classes faced taxes of ?20 and ?80 for European and other destinations, respectfully.

The new regime is set to be priced under the scheme of carbon offsetting, namely by charging in distance bands, with higher distances receiving higher penalties. New Zealand and Australia are both in the highest and subsequently most expensive band...

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Rates Cut Ahead of OCR

November 24, 2008 New Zealand Finance  No comments

New Zealand banks are so sure of a December 4th OCR cut that they are preemptively slashing their own mortgage rates.

In expectation of an Official Cash Rate (OCR) cut on the 4th of December, interest rates are already being adjusted to by banks, analysts predict that this will be especially prominent on the 6 month rates. Leading the pack in rate cuts amongst New Zealand banks is BNZ, who on the 24th of November reduced their 6 month mortgage rate to 6.99 %. Kiwibank is offering the next lowest rate at a one year 7.29%.

Bank figures are confident in a fall in the OCR with key figures from the New Zealand banking industry making statements to that effect...

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New FTA Possibility for NZ

November 22, 2008 International FinanceNew Zealand Finance  No comments

Indications at the APEC summit show that Peru, Australia and America are looking to join the currently active New Zealand, Singapore, Chile and Brunei Free Trade Agreement (FTA).

According to an announcement made by the Chile Foreign Minister Alejandro Foxley, made on the 21st of November at a meeting of trade ministers at the APEC summit, Australia and Peru are currently looking to join the four country FTA in its next round of expansions. A similar announcement was made in regards to the United States in September.

Currently, New Zealand, Singapore, Chile and Brunei hold a free trade agreement, called the Trans Pacific Economic Partnership (although previously named the P4). It was signed in 2005 and came into force 28th of May 2006...

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