Cullen confident about business tax changes

Finance Minister Michael Cullen reiterated today that the government is very focused on making meaningful changes to the business tax regime.

"This a complex task, but one that could pay real dividends for the economy," said Dr Cullen.

"For opposition finance spokesman John Key to suggest otherwise shows how ignorant he is of the realities of policy making. It's surprising for one who trumpets his business credentials so much to suggest there is a simple, quick fix available," said Dr Cullen. "Clearly he has a lot to learn.

"This government is concentrating on managing the country through any dip in economic activity.

"John Key's only solution seems to be to simply cut taxes which will only put further pressure on interest rates and the dollar thereby creating more pain for exporters and workers," Dr Cullen concluded.

The review of business tax is a key part of the post-election confidence and supply agreements with United Future and New Zealand First. It aims to provide better incentives for productivity gains and for businesses to improve their competitiveness with Australia.

Proposals for consultation will be released by mid-June at the latest.

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