R & D Tax Credit Called For

June 21, 2009 New Zealand Taxation  No comments

Several parties are actively calling for the Government to recall the recently scrapped Research & Development (R&D) tax credit.

Moana Mackey, the Labour Party’s Research and Development, Science and Technology spokesperson is voicing her support of the New Zealand Manufacturers and Exporters Association (NZMEA).

The Labour Party instated R&D tax credit used to allow companies participating in Research & Development receive a 15% tax credit on their Research and Development based activities.

Moana Mackey has stated that the lack of a Research & Development tax credit is actively hurting New Zealand’s tradable sector. She claimed that reinstating the R&D tax credit to this sector would bring New Zealand out of the recession faster, and the fact that this has not yet been done only goes to show that the National led Government has no plans to bring New Zealand out of the recession.

The NZMEA call for the tax credit reinstating comes after a recent statistics that show that R&D accounts for only 0.51% of the national GDP. This is roughly one third of the OECD average.