Personal Tax Cut Good News for Business

Media Release
18 December 2007

Personal Tax Cut Good News for Business

Businesses, as well as employees, will welcome the government’s latest confirmation that personal tax cuts will be delivered in next year’s budget according to the Wellington Regional Chamber of Commerce.

Treasury’s Half Year Economic and Fiscal Update (HYEFU) and the Government’s Budget Policy Statement revealed a contingency for a personal tax revenue reduction initiative of $1.5 billion.

“Many businesses would not have benefited directly from the company tax reduction announced in last year’s budget,” said Chamber CEO, Charles Finny.

“Around 40% of businesses are unincorporated, for example as sole traders or partnerships, meaning the company tax rate is not relevant to a large proportion of New Zealand businesses.

“We are also pleased that Dr Cullen has stated that the tax cuts will be delivered in a way that does not exacerbate inflationary pressures,” Mr Finny concluded.

ENDS

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