FSC Media Release On Taxation Bill

Richard Klipin, CEO, Financial Services Council:

The FSC believes that the proposed changes to the taxation of KiwiSaver and managed funds announced today are a bad outcome and that the Bill overreaches.

The FSC has been a constructive participant in the consultation process and whilst we appreciate the efforts of the IRD to engage effectively, on the GST on managed funds and KiwiSaver issue there is much more work to be done to get the right outcome for New Zealand.

In the middle of a cost of living crisis, increasing taxes that are then likely to increase the fees that consumers pay to invest in KiwiSaver and managed funds, and potentially decrease returns, is a suboptimal outcome.

It’s disappointing that the Government has taken this approach. We look forward to continuing to engage with them and the IRD to get these settings right, as it’s what New Zealanders deserve.

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