Shelving New Capital Gains Tax the Right Move
The Government’s announcement today that it will not proceed with its proposed new capital gains tax is welcome news for businesses, according to Business Central.
"Businesses and employers are breathing a sigh of relief they will not face this stifling and costly new tax," says Chief Executive John Milford.
"A capital gains tax would have worsened the business environment, dis-incentivised owners from growing their businesses, and greatly increased compliance costs.
"Only this week, results of our member survey showed businesses were united in their opposition to the new tax with an overwhelming net 42 per cent of respondents opposed.
"Our members across the region are glad that common sense has finally prevailed.
"It appears the voice of NZ First has convinced the Government not to proceed at this time, and we thank them for their hard work on this issue.
"We support the initiatives to improve the integrity of the tax system. A fair tax system is only achieved when all taxpayers are meeting their responsibilities and paying their share.
"The capital gains tax was a poorly conceived idea that would have hit, for example, Wellington’s high-growth high-tech particularly hard. We hope the parties of government decide to shelve this idea for good."