Category Taxation in New Zealand

NZ Will Review Smoking Taxes

March 16, 2018 Taxation in New Zealand

taxes on smokingWELLINGTON – Taxes on cigarettes may be leading to inequality and increased rates of crime in New Zealand.

The government of New Zealand has announced that it will review the impact that taxes on tobacco have had on the country, as there are some indications that the measures have not all proven to be good.

Tobacco taxes in New Zealand have consistently risen by 10 percent in January for a number of years.

The hikes are intended to be the main pillar of the government’s smoke-free 2025 policy.

More tax hikes are already scheduled to be enacted up until 2020.

The government will now review what impact the tax hikes have had on the country, and to what extent have the hikes encouraged smokers to quit.

The review will also look at what financial impact smoking has had on smokers and socie...

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Reality of Bed Taxes Creeping Up in NZ

March 9, 2018 Taxation in New Zealand

Wellington bed taxWELLINGTON – New Zealand’s capital is eyeing up bed taxes and tourism taxes, despite backlash from the industry.

Earlier this week the city council of the capital of New Zealand, Wellington, opted to investigate the feasibility of widening the taxes applied to tourism-based industries in the area.

At the start of March, the Council announced that it was looking at instating a bed tax on accommodation providers in the city.

The proposal was met with almost immediate backlash from the hospitality industry.

It was claimed by the industry that a targeted bed tax would place a tax burden on providers, despite the fact that tourism benefits several industries at the same time.

The Council has now stated that it will broaden its view and try and create a new means by which a greater portion of...

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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 comme...

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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...

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Electric Cars Cutting NZ Road Funds

January 31, 2018 Taxation in New Zealand

electric vehicle taxesWELLINGTON – Electric cars could be jeopardizing the future of New Zealand’s highways.

The principal adviser for the Automobile Association of New Zealand, Barney Irvine, has issued a warning that the increasing uptake of electric vehicles in the country could threaten the funding needed to maintain and develop the national road infrastructure.

Currently, the maintenance, upgrades, development, and police enforcement of the national highway system is funded from the National Land Transport Fund.

The money used in the fund is derived from the tax levied on the sale of petrol, with approximately NZD 0.50 per litre being diverted to the fund.

Diesel cars also contribute to the fund via an annual tax bill levied at a rate of approximately NZD 0...

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