National Leader Don Brash’s commitment to reduce taxes as part of a strategy for growth is understood, but the tax cuts that do most to create growth should come first, says Business NZ.
“Fundamentally, this means a corporate tax rate pitched below that of Australia,” Business NZ Chief Executive Simon Carlaw said.
“Without this, businesses that can choose between operating in Australia or operating in New Zealand will choose Australia every time. New Zealand cannot hope to sustain a comparable standard of living with Australia if Kiwi businesses continue to drift across the Tasman.
“Given that National’s plan is to take a significant period of time to reduce tax rates overall – thereby delaying the growth potential from such reductions – the need to get corporate tax below 30% is all the more important,” Mr Carlaw said.
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