Yesterday’s NZIER release of its Quarterly Survey of Business Opinion shows a continuing decline in business confidence.
This mirrors last month’s release of the BNZ-BusinessNZ Performance of Manufacturing Index that shows the manufacturing
sector has been in contraction for fifteen consecutive months.
Taxpayers’ Union Executive Director, Jordan Williams, said that
“With the Reserve Bank squeezing the life out of the New Zealand economy, relief can only come from a change to
government fiscal policies.
“New Zealand’s company tax rate is among the highest in the world. Reducing the company tax rate would breathe life into
the business sector and encourage investment and employment.
“Only through productivity growth, investment, and entrepreneurship can New Zealand get out of recession and back to
growth. The Government should be cutting the headline rate or, better yet, also allowing full expensing of capital items
to incentivise investment.”