Media release 11 May 2004
New tax still a tax
Ministerial pre-Budget promos - most recently for increased export promotion spending - are never accidental, says
Business NZ.
"Recycling revenue from the proposed $20 million border security tax on New Zealand trade to increase the size of the
Government's overseas trade bureaucracy may reflect good intentions, but it will be interesting to see how well it grows
critical export capability," said Business NZ Chief Executive Simon Carlaw.
"Even if the Government should finally decide that it should pay exporters' costs of the new security system it has
decided is necessary for New Zealand, the reality remains that many exporters are also importers. They will end up
paying the tax along with New Zealand consumers.
"How much more productive it would have been to have had constructive debate with the business community on basic
principles and effective security measures before taxing a new dent in New Zealand's international competitiveness."
ENDS