Tax Revenues Fallen in NZ
May 7, 2010 New Zealand Taxation
The New Zealand Government has reported lower than projected tax revenues for the nine months ending March 31st. The fall has been blamed on weaker than expected business activity.
On May 7th the New Zealand Government issued a statement revealing a 2.4 percent fall in tax revenues, compared to earlier Half-Year Update in December. The Government has revealed that it now expects tax revenues to be below previous expectations for the entirety of 2010, and perhaps also 2011. According to the statement the lowered tax revenues are due to decreased corporate income collections, and decreased provisional tax payments from individuals and source deductions. Commenting on the new results, Bill English, Finance Minister of New Zealand, said “Just two weeks out from the Budget, it underscores the brittle fiscal position faced by the Government and how finely balanced the situation is.”
According to the New Zealand Government, tax collections for the nine months reached NZD 530 million. Although, these take into account the NZD 400 million made in one-off gains from the Government’s legal action against four New Zealand banks. Provisional tax payments were NZD 309 million lower than expected. Company taxes and PAYE deductions were down NZD 349 million and NZD 537 million respectively. Although Goods and Service tax revenue is reported to have increased by NZD 314 million above forecast.
Photo by Ewan-M