17 April 2019
The Road Transport Forum has welcomed the Government’s decision not to go ahead with a Capital Gains Tax.
“Transport operators across New Zealand will be relieved the Government has decided against a Capital Gains Tax,” says
RTF Chief Executive Nick Leggett. “It had the potential to severely impact NZ businesses.”
“A new capital gains tax would have added to the already significant tax burden on transport business and would reduce
the investment that business owners could make back into their businesses. There would be less money to hire more staff,
invest in professional development and training, purchase more modern equipment and generally make businesses more
productive.”
“For transport companies a CGT would have covered vehicles, premises, land, equipment and other business assets. The
compliance alone would have been extremely onerous.”
“With Labour and the Greens being strongly in favour of a CGT it was left to NZ First to argue against it around the
Cabinet table and we are glad that they succeeded,” says Leggett. “We now hope that the Government can refocus on
increasing productivity and growing the economy for the benefit of all New Zealand businesses.”
ends