Tax Changes to Help Manufacturing Sector
April 18, 2014 New Zealand Taxation
The Labour party wants to make several tax changes in order to encourage more investment and growth in the national manufacturing sector.
On March 17th the Labour party released a statement saying that if the party is elected in the coming election, it will implement several tax changes aimed at aiding the national manufacturing sector.
According to the statement, the Labour party intends to instate a 12.5 percent tax credit for businesses engaged in research and development activities.
In order to even further support high-tech businesses, the Labour-led government would “…better integrate manufacturing R&D requirements with research-based institutions.”
Manufacturing businesses will also receive tax assistance in the form of accelerated depreciation on new equipment and facilities, in order to encourage more investment into manufacturing infrastructure and facilities in the country.
The newly issued statement also shows that the Labour party intends to enact a tax on capital gains, potentially freeing up more investment funds away from investment into housing and, instead, into more productive targets.
By: Michael Caven