Media release
Newmarket Business Association
Thursday, 28 May 2009
Deferring tax cuts won't affect NZ's retailers
Auckland's leading retail district says the suspension of the 2010 and 2011's tax cuts will not affect consumption,
because taxpayers would have been unlikely to spend the extra money on consumerables anyway.
"I think it’s fair to say the 1 October and 1 April tax cuts did not provide a measurable boost to retail simply because
consumers have cut back their spending. People are very recession wary. A few more dollars in the back pocket won't
actually get the cash registers ringing. In this recessionary environment people tend to hold on to any extra money or
use it to pay off debt than spend it on consumerables," says Cameron Brewer, general manager of the Newmarket Business
Association.
"Deferring the tax cuts is the prudent thing to do. Focusing on good economic management and stability will in the long
term benefit business more than a couple of rounds of tax cuts. Kiwis know this and that is why they support Bill
English's decision to defer the tax cuts," says Mr Brewer.
Ends