Tax Working Group Wants to Make NZ a Better Place

March 6, 2018 Taxation in New Zealand

Tax Working Group NZWELLINGTON – A new working group is weighing up the pros and cons of introducing sugar taxes, environmental taxes, and capital gains tax in New Zealand.

In a speech given on March 2nd the head of the New Zealand Tax Working Group, Michael Cullen, provided an indication of the future of taxation in New Zealand.

The Tax Working Group was established by the government at the end of last year to evaluate new tax measures and the potential impact that those tax measures will have on the country.

Michael Cullen provided an indication that the Group would focus on taxes which are aimed at changing taxpayers’ behaviour, such as taxes on goods and activities associated with obesity.

The Group will also tackle the questions of new environmental taxes and the taxation of water extracted for commercial purposes and exported out of the country.

Further, it was stated that compared to many other developed countries, New Zealand has a very narrow tax system, which may need to be widened to account for the country’s ageing workforce.

The main focus in regard to the widening of the tax base was a shift in focus away from taxes on wages and towards taxes on capital gains from investment properties and share portfolios.