New Zealand tax revenues are picking up, and are slightly above the government’s latest forecasts, mainly due to a boost in tax collections from PIEs.
On May 6th the Treasury of New Zealand released the Financial Statements of the Government of New Zealand for the ten months ended 30 April 2012, detailing the latest data regarding the country’s tax revenues.
According to the Treasury, the core crown tax revenues for the ten month period reached NZD 45.1 billion, and were approximately 1.7 percent higher than forecast in the 2012 Budget Economic and Fiscal Update. Throughout the same period, the government’s own expenditures were approximately NZD 323 million below expectation, and only reached NZD 56.1 billion.
The total unconsolidated tax revenues for the ten month period were approximately 5.3 percent higher than revenues seen over the same period in 2011.
The increased tax revenues were attributed to higher than expected collections of corporate income taxes. The Chief Financial Officer of the Treasury Fergus Welsh explained the increase, saying that New Zealand saw greater than forecast growth amongst Portfolio Investment Entities, especially amongst KiwiSaver funds, which saw good results in the March quarter of 2012.
Collections of goods and service tax was also above expectation, primarily due to a lower than forecast number of GST refunds given over the period.
The Minister of Finance also commented on the revenues, saying that despite the pick up, overall revenues were still approximately NZD 900 million below the forecasts published in the Treasury’s pre-election forecast in October 2011.
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