Tax Revenue Unexpectedly High in New Zealand
July 10, 2015 Uncategorized
WELLINGTON – Rises in the collection of income taxes have provided some hope that the government of New Zealand will reach a budgetary surplus in the near future.
Earlier this week the Treasury of New Zealand released the Financial Statements of the Government of New Zealand for the 11 months ended 31 May 2015, showing that the government has seen an increase in its operating surplus, potentially paving the way for a return to a budgetary surplus.
Over the 11 months the operating balance before gains and losses reached NZD 1 176 million, while the forecasted level for the time period was only approximately NZD 193 million.
The higher than expected tax revenue was attributed to an increase in the collection of personal income tax and the provisional tax payments made by businesses.
However, despite the rise in the collection of revenues from personal income taxes, the collection of revenues from GST dropped by approximately NZD 261 million below forecast.
It is expected that both the rise in collection of income taxes and the drop in the collection of GST will persist at least throughout July, and maybe even for the rest of the calendar year.
Cumulatively the overall improvement to tax collections has led some experts to believe that the government may reach a budgetary surplus within the foreseeable future.
Photo By: Khirol Amir