John Key MP
National Party Finance Spokesman

29 April 2005

FBT changes typical Labour spin

National Party Finance spokesman John Key is pleased that the Finance Minister has largely adopted National’s policy on Fringe Benefit Tax.

“However, I’m horrified to discover that Dr Cullen plans to fund the changes with yet another tax.

“This is really just a vicious cycle, with the looming carbon tax being used to partly fund the changes. It’s typical Labour spin - a tax con job.”

The National Party announced its policy on Fringe Benefit Tax on April 4.

“The FBT changes are one small practical step towards reducing red tape within Labour’s repressive company tax regime. I am pleased that Dr Cullen has co-opted parts of National’s policy.

“But overall tax rates are still too high. Just today we have seen yet another poll which suggests that 62% of Kiwis think tax rates are too high. We haven’t seen that depth of feeling for nearly a decade.

“Labour has consistently refused to adjust tax rates, preferring instead to squander the gains from recent economic buoyancy on pet projects and bureaucracy.

“Only National has a serious commitment to lowering the tax burden on working New Zealanders,” says Mr Key.

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