Taxpayers’ Union welcomes NZ First recommitment to indexation but condemns ‘picking winners’ tax incentives
Commenting on the tax announcements in New Zealand First’s campaign launch, Taxpayers’ Union Campaigns Manager, Callum Purves, said:
“Record levels of inflation have not only eroded Kiwis’ incomes, but have forced many to hand over a higher share of their wages to the Government each year. We already adjust superannuation and welfare payments for inflation so it is about time that we did the same for working families through income tax bracket indexation.
“New Zealand First’s proposals for tax incentives are, however, concerning. When Government’s pick winners, they invariably get it wrong, costing the taxpayer for poor returns. Yes, we need to reduce our corporate tax levels to make New Zealand a more attractive place to do business and bring in more foreign direct investment, but it is not the Government’s place to play favourites.
“Removing GST on certain food products is a populist policy that does not stand up to scrutiny. It would almost certainly not be fully passed onto consumers, create more complexity for businesses when pricing, likely lead to expensive court battles over what is and is not exempt, and fail to target support to those who need it most. New Zealand’s clean and efficient GST system is something worth retaining.”