NZIER report on Labour’s Capital Gains Tax policy

9 September 2014

NZIER report on Labour’s Capital Gains Tax policy

The New Zealand Labour Party has issued a media release calling into question the efficacy of the report authored by the New Zealand Institute of Economic Research (NZIER).

Federated Farmers notes the NZIER details Victoria University’s Tax Working Group consideration that a CGT, of the kind proposed by the Labour Party, would not be an efficient and effective option going forward.

This media statement confirms that the NZIER stands by its report and Federated Farmers deliberately selected an independent organisation to prepare the CGT report.

The NZIER report was issued to generate discussion on what could become a major change to New Zealand’s taxation base. In doing so, it casts doubt about Labour’s revenue projections and assumptions about the capital gains tax.

The Federation believes it is incumbent on the Labour Party to release detailed calculations supporting the basis for its policy allowing independent scrutiny ahead of the General Election.

Particularly, the analytical basis underpinning the Labour Party’s estimates of CGT revenue, which were revised upwards earlier this year.

The comments we have read do not represent the report NZIER wrote and we invite the media and commentators to read that report here.

Other objections raised by the Labour Party are reflective of debates around the world, in which the Labour Party holds a different philosophical view.

The NZIER fully stands behind its key findings and messages.

To read a copy of the NZIER report, please click here.

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