End of Tax Cut Times

August 4, 2009 New Zealand Taxation  No comments

New Zealand’s era of tax cuts is over, according to Finance Minister Bill English.

Bill English put a blunt message forward to New Zealand, the time of tax cuts has passed. On the 2nd of August at National Party conference in Christchurch, Bill English stated that “There is no possibility of just cutting taxes.”

Bill English said that the government is projecting deficits of up to NZ$12 million, which leaves no room for tax cuts. There has already been an effective cancellation of the National Party’s promised personal tax cuts.

Further, Bill English commented on the upcoming “first-principals” review of the Australian tax system, and not wanting to be caught out with previous tax engagements by some possible innovative change that might be made. Some speculated that these blunt tax statements might just be preparation for some radical tax announcements in coming months.