New Zealand Tax Revenue Down by $3.18 Billion

March 5, 2010 New Zealand Taxation

Government Building @ WellingtonIn its latest Tax Outturn report, the New Zealand Government has revealed that the total unconsolidated tax revenues for the seven months to January 2010 were 9 percent lower than the same period last year, and 0.1 percent below previous forecasts.

On March 5th the New Zealand Government made public its Tax Outturn data for the seven months to January 2010, which it claimed is one of the earliest indicators available to judge the economic conditions of the country. The data shows that the total direct tax revenues for the time period were 1.3 percent lower than projected in the 2009 Half-Year Economic and Fiscal Update, though indirect taxes had risen by 1.8 percent, making the net effect an approximate 0.1 percent drop below forecasts. Compared to the same period in the previous year, the direct tax revenue had dropped by 14.6 percent, and indirect taxes grew by 1.1 percent.

According to the Tax Outturn Data, individual tax revenues had dropped by 1.7 percent compared to projections, and 9.3 percent compared to the previous year. Corporate tax revenues fell by 24.7 percent in comparisons to last year though exceeded forecasts by 1.5 percent. Goods and Service Tax revenues exceeded projections and last year’s records by 2.7 and 1.9 percent respectively. Excise duties were on par with governmental estimates, and surpassed last year by 0.9 percent.

The Tax Outturn Data shows that the total New Zealand Government revenues were NZD 32 billion in the seven months to January 2010, with NZD 19.4 billion coming from and direct taxes and NZ 12.6 billion from indirect taxes.

Photo by Remon Rijper