The Taxation Council of New Zealand is warning that the government’s tax policy could cost the nation tens of millions of dollars in taxes over the next decade.
The council’s tax expert, Peter Wilson, said the current system of tax breaks and credits was “not very good” and there were a range of issues that needed to be addressed.
“We are in a very vulnerable financial position.
We are at the point where there is a need to take action.
We have been running an economic recovery for a decade and it is a recovery that is not yet complete,” he said.”
This is not a recession, it is not an economic emergency.
We have been running an economic recovery for a decade and it is a recovery that is not yet complete,” he said.
Mr Wilson said New Zealand was in a transitional period, after more than 20 years of the previous Labour government.
The new government is also aiming to reduce the amount of tax it collects in the next 12 months, from 5.6 per cent of GDP to 3.5 per cent.
The Taxation Institute of New York (TINY) said it was forecasting a loss of about $6.2 billion to the economy in the years to 2020, due to the changes in the GST system.TINy chief economist David Zettles said the government needed to focus on the long-term implications of the changes.
“This is really about making sure that people are paying their fair share,” he told 7.30.
The GST changes would make that even worse because the amount people are getting is much more than what they were getting before.””
People have been making a lot of money, and if they were paying less they would be paying more.”
The GST changes would make that even worse because the amount people are getting is much more than what they were getting before.
“In the longer term, Mr Wilson said the new government needed a comprehensive tax reform plan.”
They need to set out what they would like to see in terms of tax rates, deductions and credits and so on, and how they would reform the system so that it’s a fairer system.
“I think the government should focus on that in the short term.”
What you need to know about New Zealand’s tax system:Tax credits and exemptionsWhat is the GST?
How much does it cost?
What’s the GST exemption?
What are the benefits of the GST and how much does that cost?
Topics:taxation,government-and-politics,business-economics-and/or-finance,economy,government—business-practice,economic-trends,government,taxation-and_finance
