Yesterday the Prime Minister announced a deal with Hollywood studios that will allow up to 25% tax rebates on film production expenditure within New Zealand.
While we can all applaud our world-class film industry and the jobs the deal will create, why is the film industry so special? Many industries are still suffering from a high dollar and increased international competition. As the Government acknowledges (at least for film producers) tax matters when it comes to business choosing what country to invest - we compete against the world. Why should less high profile or ‘cool’ industries shoulder the burden while the film industry is sheltered – would we better off if the Government worked harder to lower taxes for all?
KPMG have a useful tool to compare tax rates (corporate, individual and indirect) on their website.
Click here to comment on this blogpost via the Taxpayers' Union Facebook page. Should we working to become more competitive overall, or should we encourage our politicians to 'cut more deals'? At what point does it become corporate hand-outs?