Government to Continue Pursuing Tax Cuts

January 13, 2010 New Zealand FinanceNew Zealand Taxation

DSC_5676New Zealand Prime Minister John Key has given indications that the New Zealand Government will continue to investigate the viability of personal tax cuts in 2010.

At his first press conference for 2010 John Key summarized the Government’s goals for the new year, and said that “Shoring up the tax base and ultimately lowering personal tax rates are important”. Though he provide no further details, John Key said that further explanations on the Government’s economic position will be provided on February 9th, at the opening of Parliament.

Ultimately, no further decision on personal taxation can be expected before discussion on the findings of the Tax Working Group, a government sponsored collective charged with investigating the country’s taxation future. According to the Prime Minister, the group’s final report can be expected within weeks. He went on to say that it was obvious from preliminary releases that the Tax Working Group had identified numerous shortcomings within New Zealand’s taxation landscape, and would address them in its final report.

John Key also said that he would remain “vigilant” on the issue of corporate income tax. Continuing to explain New Zealand’s fiscal situation, the Prime Minister said “…it is my expectation that the major theme for 2010, for the Government, will be improving New Zealand’s economic growth. The Government remains very committed to strengthening our economy and lifting wages, we will also remain very focused on ensuring that we deliver value for money from the state sector.”

Photo by kelvinhu