Tax Review Interim Report
A Tax Review Panel has delivered its initial report on ways to make the tax system fairer. Aside from its recommendation to tax home-owners - which was rejected by the public and the Government - the report comes up with other ideas, including:
- a flatter but not flat income tax scale (the review team suggests a two-tiered income tax rate, with a higher rate kicking in at $29,500);
- aligning the top personal rate with the company tax rate;
- that any tax increases should be to GST and any tax savings to income tax;
- abolishing stamp duty and cheque duty;
- that there be no financial transaction tax;
- abolishing excise duties on tobacco, alcohol, gaming and petrol on the grounds that they are inefficient and hit the poorest;
- retaining present tax treatment of retirement savings;
- a $1 million cap on the amount of income tax any individual pays; and
- rejecting research and development incentives.
Submissions closed on 1 August and a final report is due to be presented to the Government in October.
Contact for Enquiries
The Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: 0800 00 83 33
Fax: +64 4 894 0720
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