Tax Cuts Looking Dubious

April 6, 2009 New Zealand FinanceNew Zealand Taxation  No comments

Progressive release of ominous bad financial news is making the upcoming 2010 and 2011 tax cuts look unlikely.

The Government’s budget has decreased yet again, putting it in an even more financially precarious position than previously. Recently figures show that the government’s eight month till February budget figure was NZ$ 8.45 billion in the negative. When the pre-election forecast figure was at NZ$3.18 billion in surplus, this puts a great strain on previous budgetary plans.

Statements by Prime Minister Bill English have already put a dubious cast on the possibility of future tax cuts, if the government were to achieve any form of sustainable spending, or realistic budgets.