Monthly Archives November 2009
November 17, 2009 New Zealand Taxation
In their newest report, the New Zealand Salvation Army has said that excise taxes on alcohol should be raised by a further 25%.
The Salvation Army released a report on November 15th, entitled Excising Excess, which claims that in order to minimize the harm from alcohol abuse and alcohol related crimes, the New Zealand Government needs to immediately raise taxes on alcohol. The proposed 25% increase in excise tax on alcohol would see a total of NZ$0.20 added to the average price of a handle of beer, a NZ$0.50 increase to the price of a bottle of wine and approximately NZ$2 to the price of “8 per cent strength six-pack of bourbon and cola”.
It is claimed in the report that the increase in alcohol taxation could see a 10% drop in alcohol consumption by teenagers and heavy-drinkers, those wh...Read More
November 13, 2009 New Zealand Taxation
Alan Bollard, Governor of the Reserve Bank of New Zealand (RBNZ), has stated that he wants to see new taxation measures ensure that New Zealand adequately handles property taxation, to prevent a housing caused economic lull.
Alan Bollard made comment on November 11th regarding New Zealand’s reliance on debt-fueled property investments. Though he did not go into specifics, he made it clear that it is the belief of the Reserve Bank that tax measures should be instated that would reduce the relative tax advantage that exists with investment in the housing sector.
Summing up his argument, Alan Bollard claimed that “for a number of years we have made a point of the need to ensure property investment is not particularly advantaged in terms of tax...Read More
November 11, 2009 New Zealand Finance
According to a Labour, Progressive and Green Party investigation, New Zealand banks failed to pass on the full effect of Official Cash Rate (OCR) decreases to borrowers.
The multi-party cooperative inquiry yielded a report on November 11th that unambiguously claims that New Zealand’s major banks have not passed on the full effect of OCR cuts to New Zealanders. It is reported that the full effect of the drop from mid-2008’s level of 8.25% to today’s 2.5% was not transferred and the four largest banks kept a one percent margin for themselves. At today’s borrowing levels, the report states, an extra NZ$787 million has been added to the cost of business, NZ$460 to farming loans and NZ$1.6 billion to home-loan repayments.
Russel Norman, Green-Party Co-leader, stated upon the release of the rep...Read More
The New Zealand economy is showing definite signs of recovery, though warnings have been given not to over-estimate its pace.
According to statements made by John Key, New Zealand Prime Minister, and reports by the New Zealand Reserve Bank, the economy will continue to recover over the second half of 2009. The Prime Minister said that the New Zealand GDP in the fourth quarter will be “quite good” and that the third quarter figure “won’t be bad either”.
The recovering economic figures are due highly to the recovery of the Australian economy, destination for approximately one quarter of New Zealand’s exports...Read More