Tax Revenues Exceed Forecast in New Zealand
March 11, 2015 Taxation in New Zealand
WELLINGTON – New Zealand has reached a budget surplus over the last seven months, despite forecasting a significant surplus.
In a statement issued on March 11th the Treasury of New Zealand confirmed that over the 7 months ending January 31st the tax revenues collected in the country exceeded expectations, totaling NZD 37.78 billion, a level approximately NZD 456 million ahead of the government’s own forecasts.
The unforeseen rise was attributed to increases in the collection of personal income tax and corporate income tax, which were 1 percent and 3.2 percent above forecast, respectively.
However, the rise in the collection of direct taxes was offset by a drop in the collection of GST, which was NZD 95 million lower than forecast.
The better than expected results saw the government’s budget rise into a surplus of NZD 77 million, despite the fact that the budget was expected to reach a deficit of NZD 635 million.
The current results are also significantly better than in the previous year, when the budget deficit over the same time period hit NZD 1.06 billion.
The government currently expects that it will reach a surplus in its annual budget in 2016, after several years of deficits.
Photo By: Khirol Amir