NZ First have prevented the Government from proceeding with any changes to capital gains taxes, despite a CGT being a core policy of Labour, backed by Jacinda Ardern, and despite it being something Greens have wanted for a long time (and James Shaw stated earlier this year that the Government didn’t deserve to be elected if they didn’t introduce a CGT).
New Zealand First Leader media release:
Tax Working Group Report
New Zealand First Leader Winston Peters has welcomed Cabinet’s decision not to implement an extension of capital gains taxation, following the Prime Minister’s statement in response to the Tax Working Group Report.
“This decision provides certainty to taxpayers and businesses. We in New Zealand First wanted first and foremost for New Zealanders to have time to discuss and debate the contents of the report,” stated Mr Peters.
“During that time we have listened very carefully to the public.
“There is already an effective capital gains tax through the Bright Line test brought in by the last National Government and New Zealand First’s view is that there is neither a compelling rationale nor mandate to institute a comprehensive capital gains tax regime,” said Mr Peters.
“We also welcome the announcement that the coalition government will be urgently exploring options with the Inland Revenue Commissioner, in concert with central and local government, for taxing vacant land held by land bankers and reviewing the current rules for taxing land speculators. Tightening these rules was a priority for New Zealand First.
“Current tax policy, rigorously enforced by an Inland Revenue Department properly resourced will by itself 1) improve the administration of existing tax policy, and 2) target those multi-nationals not paying their fair share of tax,” Mr Peters said.
There was nothing about a CGT in the Labour-NZ First coalition agreement. This was the only reference to tax:
- Increase penalties for corporate fraud and tax evasion.
Peters via Twitter yesterday:
Despite the claimed hearing and listening, Peters has done what he has said he would do for a long time.
During the 2017 election campaign (Politik): Peters ready to throw spanner in Labour’s capital gains tax plans
Peters says he is not ready to support any moves labour might want to make to extend capital gains taxes.
…
Finance spokesperson Grant Robertson has arrived at a neat compromise. Labour would set up a Taxation review once it got into Government.
Phil Twyford (on The Nation): “In the first three years we’re going to do a taax working group that will redesign the entire tax system”.
Robertson (on NZ Q&A): “We will have a working group that will have a look at getting a better balance into our tax system between how we tax assets and how we tax income”.
Peters though is adamant.
“I am not for an extension of the capital gains tax” he told POLITIK.
Peters is critical of the review and Labour’s plan to provide details on it’s water levy policy after the election.
“How many times can you get away with this sort of nonsense” he said.
So why did Labour insist on going ahead with the Tax Working Group that had an aim of recommending a capital gains tax?
It seems to have been a wasted exercise, unless the intention was to provide Peters with an opportunity to say NO CAPITAL GAINS TAX.
