Removing tax harbours the right move

David Shearer’s announcement that Labour will keep their commitment to remove tax harbours around capital gains, and seek to support the real economy is part of what is needed to balance our economy and reduce our current account deficit say the New Zealand Manufacturers and Exporters Association (NZMEA). Shearer made the comments during a speech this morning.

NZMEA Chief Executive John Walley says, “The proposed removal of the capital gains tax harbour is one indication that political thinking is shifting in New Zealand. A better balanced tax system is one component of moving investment incentives towards productive activity and away from unproductive assets, which is a change New Zealand urgently needs.”

“It is important that a commitment to reform monetary policy is also part of this package.”

“Like it or not, local real estate and domestic activity will not close the current account deficit; New Zealand needs to earn more.”

“The details around Labour’s plans still need some serious and detailed work, but there does seem to be some political will to create a more productive economy and that has to be supported.”

ENDS

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