John Key MP National Party Finance Spokesman

29 June 2005

Tax on savings not on says Key

National Party Finance spokesman John Key says, "Michael Cullen's new plan to tax the hard earned savings of New Zealanders is yet another blatant tax grab."

"Labour is determined to walk all over New Zealanders who have invested offshore in shares. It is denying them the opportunity to maintain diversity in their investment portfolio and National will oppose it.

"It is yet another blow to those trying to save for their retirement," says Mr Key.

He is commenting in the wake of Labour's confirmation that it intends to introduce a capital gains tax on seven traditionally exempt countries, including Australia.

"At a time when we are supposed to be removing the barriers and working towards a single market with Australia, Labour is throwing up another roadblock.

"Dr Cullen has argued against this sort of tax for years. He has said he is opposed to the risk-free rate of return model because it is overly complex. Now he appears to be changing his tune.

"National is opposed to the overtaxation of savings and will not support this move," says Mr Key.

ENDS

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