More Tax Cuts on Way in New Zealand

June 26, 2017 Taxation in New Zealand

Bill English tax cutsWELLINGTON – New Zealand’s Prime Minister has made a campaign promise of more tax cuts, on top of the tax cuts that are already planned to come into effect in April next year.

In a speech over the weekend, the Prime Minister of New Zealand Bill English indicated that if his party is re-elected in the coming election, taxpayers across the country could look forward to another round of tax cuts.

Currently, the National Party, which is led by Bill English, has promised that from April next year, a series of tax cuts will reduce the weekly tax burden of 1.3 million households by approximately NZD 26 each.

Some critics have criticised the cuts by saying that wealthy individuals and households will enjoy a disproportionately greater tax benefit, though supporters of the cut have said that the tax cuts contain measures which are enjoyed almost exclusively by low-paid workers and families.

The Prime Minister suggested that if his party is re-elected, it will endeavour to instate the second round of tax cuts, while also lifting incomes.

However, in order to drop taxes, the government will need to “keep lifting growth and carefully manage the public finances”.