INDEPENDENT NEWS

Govt will not implement a Capital Gains Tax

Published: Wed 17 Apr 2019 02:03 PM
Rt Hon Jacinda Ardern
Prime Minister
MP for Mt Albert
17 April 2019PĀNUI PĀPĀHO
MEDIA STATEMENT
Govt will not implement a Capital Gains Tax
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern announced today.
“The Tax Working Group gave the Government, and the country, an opportunity to look at the fairness of our tax system and debate options for change,” Jacinda Ardern said.
“All parties in the Government entered into this debate with different perspectives and, after significant discussion, we have ultimately been unable to find a consensus. As a result, we will not be introducing a capital gains tax.
“I genuinely believe there are inequities in our tax system that a capital gains tax in some form could have helped to resolve. That’s an argument Labour has made as a party since 2011.
“However after almost a decade campaigning on it, and after forming a government that represented the majority of New Zealanders, we have been unable to build a mandate for a capital gains tax. While I have believed in a CGT, it’s clear many New Zealanders do not. That is why I am also ruling out a capital gains tax under my leadership in the future.
“The Tax Working Group was a valuable exercise that has delivered some useful suggestions well beyond just the debate on CGT, and I want to thank the Group for its work. In fact the majority of recommendations will either be investigated further or have formed part of our work programme.
“There are other things that can be done to improve the fairness of our tax system. As such the Coalition Government has agreed to tighten rules around land speculation and work on ways to counter land banking.
“Work will also continue to cut red tape for business and crack down on multi-nationals avoiding paying their fair share of tax in New Zealand. We have already made changes to address base erosion and profit shifting, and we will shortly release a discussion document on options for introducing a digital services tax.
“My job now is to focus on the things we can and are doing to improve the wellbeing of all New Zealanders.
“The Coalition Government is addressing the long-term challenges New Zealanders face such as mental health, climate change and child poverty and responding to the March 15 terrorist attack and keeping New Zealanders safe. Those challenges will be my priorities for the remainder of this term,” Jacinda Ardern said

Next in New Zealand politics

Gordon Campbell on the Commerce Commission fuel report
By: Gordon Campbell
Bill to allow licensed premises to stay open for RWC matches
By: New Zealand Government
KiwiBuild programme losing another top boss
By: RNZ
Helping our cities grow up and out
By: New Zealand Government
Ngāpuhi elder 'shocked' by conditions at Ngawha Prison
By: RNZ
Independent election policy costing unit a step closer
By: New Zealand Government
Primary and intermediate principals vote to accept new offer
By: NZEI
Breach of 'journalistic privilege' during unlawful search
By: Independent Police Conduct Authority
BSA releases decisions on coverage of mosque attacks
By: Broadcasting Standards Authority
UPDATE: Lack of fuel competition may be costing $400m
By: BusinessDesk
Breaking wholesale stranglehold on petrol supply
By: BusinessDesk
Commission releases draft report on retail fuel market
By: Commerce Commission
CommComm report will lead to more regulation, but same price
By: ACT New Zealand
MTA pumped with fuel market study findings
By: Motor Trade Association
Oil reserves budget blow out reason for quiet levy increase
By: NZ Energy and Environment Business Week
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media