Tax Revenues Rise Unexpectedly in NZ
March 7, 2017 Taxation in New Zealand
New information released on March 7th has shown that the government is seeing a larger surplus over the last 7 months than originally anticipated.
The level of tax collections seen over the seven months to the end of January were NZD 291 million higher than anticipated and forecast.
The level of expenditure seen by the government was approximately NZD 338 million lower than expected.
Overall the surplus seen on the government books was NZD 1.145 billion, a level which is NZD 703 million higher than the level anticipated previously.
The decrease in expenditure was accounted for mainly by differences between the projected costs of recovery from the recent earthquake in the town of Kaikoura, and the actual costs incurred during the clean-up and rebuild efforts.
The increased tax revenues were attributed primarily to stronger than expected levels of tax collections, which was NZD 378 million above forecast.
However, not all the results seen over the 7 months were positive, with the collection of GST being below forecast, presumably due to consumer spending and demand being lower than anticipated.