Land Tax Idea Voiced for NZ

August 26, 2009 New Zealand Taxation  No comments

The idea of introducing a land tax has been proposed in New Zealand.

The Government commissioned Tax Working Group has raised another idea to aid the New Zealand Government’s coffers, a land tax. As it is envisioned and researched by the Tax Working Group at the moment, the land tax will be levied at 0.1% of the unimproved value of land without considering the worth of the buildings on it.

Average households will see a total tax liability of $214 annually, which will raise an additional $460 million for the New Zealand government. Estimates by the Dominion post have claimed that this is enough to lower the top marginal personal tax rate to 33%

According to Bill English, New Zealand Finance Minister, the idea of a land tax is “floating around as an issue”. He did not go further to say how likely the idea is. It has been repeatedly stated by Government figures that there is an aim of reducing personal, corporate and trusts tax levels to 30%. Other possible ideas put forward by the Tax Working Group, like raised GST levels, all aim to make this a reality.