Cullen confirms CGT will not be addressed in interim TWG report

Michael Cullen, chairman of the tax Working Group, has confirmed that the interim report due to be released this month will make no recommendations on a Capital Gains Tax.

Stuff: Absence of tax recommendation means ‘more uncertainty for longer’, says National

The Tax Working Group will not recommend whether or not New Zealand should get a broad-based capital gains tax, in an interim report due out this month, chairman Sir Michael Cullen has confirmed.

Stuff had previously reported that any recommendation on the controversial tax would be deferred until the working group publishes its final report in February.

Cullen said on Wednesday that he was “happy to confirm that”.

Finance Minister Grant Robertson has played down the implications, saying the work the Tax Working Group was involved in was “always supposed to be a two-stage process”.It seems remarkable that one of Labour’s most prominent policies and their big tax policy, CGT, would not be addressed on the first report.

Surely for a tax package to make any sense it would include the major components, in general terms at least.

As Amy Adams says, this won’t do anything to address uncertainty in the business community.

It seems to confirm that what the TWG would like to recommend on a workable CGT is outside the parameters given them, or Labour have indicated is not something they want to hear at this stage.

 

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3 Comments

  1. Ray

     /  September 12, 2018

    So two of the Working Groups look like they were fizzers.
    The Electricity one failed to back up the Labour Party position of indecent profits being screwed out of consumers, worst they could find was that people who are slow to pay and stick with the same company don’t save as much as the rest of us do.
    Now the Tax reform seem to have fallen at the first fence of Capital Gains, it just isn’t going to work efficiently if homes are excluded but that was in the brief.

    Only 158 to go, talk about wasted money and opportunity.

    Reply
  2. Corky

     /  September 12, 2018

    Good news. But, should Labour win in 2020, a CGT will be back on the agenda.

    Reply
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