Monthly Archives January 2011

Key and Goff Spar Over Taxes

January 27, 2011 New Zealand Taxation

United Future AnnouncementThe Labour Party and the National Party are already squaring off for the upcoming general election, having begun making promises concerning tax cuts, tax exemptions, and an improved economic performance for New Zealand.

Over January 25th and January 26th both Prime Minister John Key and Labour Party leader Phil Goff kicked off the election year by giving their own respective speeches announcing their views on the New Zealand economy and the country’s tax future.

On January 25th Phil Goff gave his State of the Nation speech, in which he revealed the party’s primary taxation promises for the 2011 general elections. The most ambitious proposal was to create a “tax free zone” on the first NZD 5000 of personal income earned annually by all taxpayers...

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GST Increase Hikes Prices at Record Rate

January 24, 2011 New Zealand Taxation

24-02-2005Last year’s Goods and Service Tax rate increase caused a significant jump in New Zealand’s inflation figure, with debate arising as to whether consideration should be taken to lower the tax.

Last week it was revealed that the recent hike in the national Goods and Service tax (GST) rate bumped the quarterly inflation level to the highest it has been in 22 years. According to official data released by the Reserve Bank of New Zealand (RBNZ), inflation for the three months to December 2010 rose to 2.3 percent, the highest quarterly increase, since the last GST rate increase in September 1989.

The rapid price rise has been attributed to the October 1st 2010 2.5 percent hike to the GST rate...

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Tax to be Prime Issue During Elections

January 19, 2011 New Zealand Taxation

Spaghetti JunctionThe Labour Party is set to use tax issues as a major talking point in the 2011 New Zealand General Election, although has so far opted to remain vague on exactly what changes it will seek to instate.

On January 19th, while conducting a television interview for TVNZ Labour Party leader Phil Goff indicated that tax will be a prominent issue in the 2011 New Zealand General Election, pointing to the price of everyday items, petrol and tax rates as major issues for taxpayers.

Phil Goff chose to remain vague about the exact changes that the Labour Party would seek to instate, but he explained his general intentions. Phil Goff summarized the Party’s intentions, saying that he will work towards a “fairer tax system”...

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John Key to Attempt Departure Tax Negotiation

January 17, 2011 International TaxationNew Zealand Taxation

Long haul, 8 Sept. 2008The New Zealand Prime Minister will soon conduct talks with the UK Foreign Minister, in hopes of addressing the Britain’s high airport departure tax.

On January 16th the Prime Minister of New Zealand John Key indicated that he will attempt to persuade British Foreign Minister William Hague to reconsider the UK’s upcoming airport departure tax. The Prime Minister believes that the tax could be especially harmful to New Zealand’s tourism industry, and even undercut the economic impact of the upcoming Rugby World Cup.

The British Foreign Minister is expected to arrive in New Zealand on January 20th, along with the Defense Secretary Liam Fox. The visit will last two days and is expected to consist of several ceremonial visits, along with numerous political discussions...

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