New Zealand's Tax Working Group: Govt. Should Broaden Tax Base

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New Zealand should broaden its tax base and increase revenue by extending capital income taxation and land taxes, a government group said.

"New Zealand's current tax system is not sustainable as there are major growth, fairness and integrity issues," the Tax Working Group said Wednesday. The group will hold a public tax conference on December 1. The Tax Working Group considers the medium-term direction of the current tax system and provide a forum for informed discussion of the issues.

The group said the principle of a broad-based low-rate tax system should be maintained and that base broadening was required. Consideration should be given to change and extend the taxation of capital to make it more consistent and principled across the capital base.

The fifth session of the Tax Working Group discussed the changes required to align the top personal and corporate and trust rates. Each of these systems was combined with base broadening options, which included extension of capital income taxation, land taxes, the risk free return method of taxation, changes to the taxation of investment property, and changes to the rate of GST.

New Zealand should broaden its tax base and increase revenue by extending capital income taxation and land taxes, a government group said. (Market News Provided by RTTNews)