A new Tax Working Group should have primary sector representation says Federated Farmers.
Sir Michael Cullen is to chair the Group from February 2018 and the Federation recommends that farming and fellow industry stakeholders get a voice.
“Ideally it would be good to have someone on the Group who understands the agri-sector and its tax issues. Given the likely focus on environmental taxation, capital gains and land taxes, it would same a reasonable thing to do,” says Federated Farmers Vice President Andrew Hoggard.
“It’s been 8 years since the last major review and with the change of government, it’s a logical step.
“As far as we are concerned the current tax system is simple and efficient and we would anticipate these qualities will be maintained.”
While the Working Group has scope to consider how the tax system can contribute to environmental outcomes, the Federation would welcome incentives for farmers.
“I’m sure if they dangled a carrot or two to help farmers, they would certainly invest more on top of the environmental mitigation they’ve undertaken to date,” says Andrew.
Government assurances that it would take a measured approach, would be reassuring for farmers with changes not planned until after the next election in 2021.
“From our understanding there’s no appetite for increasing income tax rates, or GST with inheritance tax also off the agenda. This should give farmers some certainty going forward in terms of their business plans and security,” says Andrew.
Source: Federated Farmers