NZ against Tax Cut Borrowing

April 13, 2009 New Zealand FinanceNew Zealand Taxation  No comments

Planned income-tax cuts are looking progressively more unlikely, and New Zealanders seem relieved.

As the Government is facing an ever growing disparity between December predicted Treasury surpluses and the grim reality of the actual situation, New Zealand Prime Minister John Key has begun signalling that planned future income-tax cuts might not go ahead. While this is pending on future tax income and government budgets, if the decreasing tax income and growing debt are any indicator, the scrapping seems more than likely.

According to a survey released by the New Zealand Business Council for Sustainable Development, New Zealanders are not too phased by this. While it seems that the majority of New Zealanders support future cuts, they thoroughly do not do so if it would require further borrowing by the Government. Similarly there seems to be a large consensus that previous cuts should not have gone ahead if they required increased Government borrowing.

The full survey details can be seen at the New Zealand Business Council for Sustainable Development website, here.