Poor Tax Take Widens Deficit
November 8, 2012 New Zealand Taxation
Disappointing tax collections over the last three months have brought the government further away from its goal of reaching a budget surplus.
On November 7th the Treasury of New Zealand released the Tax Outrun Data report for the September quarter, showing that total unconsolidated tax revenues for the period were 1.1 percent below the government’s forecasts, but approximately 5.6 percent above the same time last year.
Cumulatively, the national budget is now operating NZD 449 million below previous forecasts.
The newly released report showed that the collection of personal income taxes was NZD 90 million below forecast, and the collection of corporate income taxes was nearly NZD 16 million below estimates.
The collection of GST was also below the government’s expectation, falling approximately NZD 100 million below forecast.
Despite the drop in revenues, the government is still hopeful of meeting its budget surplus target by the end of 2015, with Finance Minister Bill English saying that “… the accounts confirm that the Government is keeping its spending under control, but that revenue can be affected by the uncertain global economic situation and its impact on New Zealand.”
Photo by Mark Lincoln