Tax Cuts and Road taxes on Horizon in New Zealand
February 16, 2017 Taxation in New Zealand
In a speech given on February 16th the Finance Minister of New Zealand Steven Joyce said that in the upcoming budget the government will be looking to lower personal income taxes and implement new tax system on roading.
The Minister did not reveal the exact extent of the tax cuts that he hopes to implement, but did say that it is the government’s goal to ease the tax burden faced by middle- and low-income earners as soon the as the government’s own fiscal position allows.
New Zealand’s fiscal position has been steadily improving over the last few years, with the national debt-to-GD ratio set to fall to 20 percent by 2020.
The current National government has been claiming that they will push for tax cuts in the near future, although some experts believe that this promise was made as a run up to the upcoming election.
The Minister also said that the government would not support regional fuel taxes as a means of raising extra funds for road development.
The topic of regional fuel taxes has been pushed by the Auckland Council, as a means of raising new revenues streams to deal with the worsening traffic and congestion in the area.
Steven Joyce did concede that the government will need to investigate new means of raising taxes for road development, and hinted that electronic road tolls may be one such solution.