Minister Applauds NZ’s Tax Competitiveness
The New Zealand Finance Minister has claimed that the upcoming decrease to corporate tax rates will increase the countries international competitiveness and economic efficiency.
On July 2nd Bill English, Finance Minister of New Zealand, praised the country’s planned corporate tax rate decrease. The statement came as a response to the Australian Government’s announcement that its national corporate tax rate will not be reduced below 29 percent until fiscal conditions permit.
According to Bill English, the New Zealand 28 percent tax rate, combined with previously announced Budget measures will aid national businesses with the incentives to invest and increase exports. The Minister explained that New Zealand’s relative advantage over Australia will allow the country to draw greater international investments. He elaborated further, saying that New Zealand’s corporate tax rates will be 2 percent lower than Australia’s for at least two years.
Bill English continued to say that New Zealand has a unique tax package, which has allowed significant tax rate decreases in an international environment of tax rate increases. The Government will also “tilt” the economy away from unsustainable increases in spending, continued borrowing, while increasing investing in productive elements of the economy.
Photo by Chris Gin