NZ Enjoys Tax Boost

February 15, 2018 Taxation in New Zealand

NZ tax revenuesWELLINGTON – The New Zealand government has enjoyed a bout of increased tax revenues, despite an increase in its expenditures.

The New Zealand Treasury started this week by announcing that the tax revenues seen by the government, and, subsequently, the operating balance for the six months to December 31st 2017 were significantly higher than expected.

The Core Crown tax revenue for the period was NZD 37.2 billion, a level which is NZD 0.6 billion ahead of the forecast in the 2017 Half Year Economic and Fiscal Update.

The increased tax revenues were made up primarily of a NZD 0.3 billion boost to source deductions, and a NZD 0.2 billion boost to GST collections.

Along with the higher than expected revenues, there was also a higher than expected result to the expenditure of the government, with Core Crown expenses coming in at NZD 39.6 billion, compared to a forecast of NZD 39.5 billion.

When combined with the non-tax revenues, the overall operating balance before gains and losses was NZD 1.1 billion, which is approximately NZD 0.8 billion above forecast.

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