Council Pushes for Focus on Long-Term Tax Planning

February 13, 2010 New Zealand FinanceNew Zealand Taxation

Chinese New Year Festival | ?????The New Zealand Business Council for Sustainable Development (NZBCSD) is encouraging New Zealander’s to focus on the long-term positive effects of tax changes and not the “day-one impacts” of any Government reform propositions.

In a press release issued on February 12th the NZBCSD has stated that they are in full support of equating top personal, corporate and trust tax rates, along with lowering across the board personal rates and broadening the tax base, while raising taxes on consumption, as proposed by Prime Minister John Key in his first statement to Parliament on February 9th. The NZBXSD claims that this would lead to a fairer and more sustainable tax system, eventually expanding the economy and drawing in greater numbers of international investors.

The NZBCSD proposed a similar set of changes to the Government after the Business Budget Summit, held on November 1st 2007, though the advice was not heeded. Peter Neilson, Business Council Chief Executive, explaining the Government’s dismissal of the ideas said, “It seems we are preoccupied as a nation with who might win or lose on the first day of reform.” He continued on to say that GST increases were a primary example of this attitude, with many concerned about the initial price increase while ignoring the long-term benefits. He commented further, saying that as long as tax changes are wide reaching and low income individuals receive some support for any first day price increase, a tax reform package should be acceptable to most New Zealanders.

Photo by Mr J.Z