The Tax Working Group’s (TWG) Interim Report provides a useful resource for how New Zealand’s tax system could be improved says Federated Farmers vice president Andrew Hoggard.
“It’s a good piece of work. The report clearly articulates and explores the issues we raised in our submission – it’s a highlight when you can see you have been heard.”
A big issue explored in the report is whether to extend New Zealand’s taxation of capital income, says Andrew. “Federated Farmers remains opposed to a significant broadening of the capital gains tax particularly if it taxes unrealised capital gains.”
“The report outlines the value of providing ‘roll-over relief’ for farms sold to the next generation and for farmers wanting to ‘trade-up’ to a bigger more expensive farm. These were two critical issues we raised in our submission to the TWG back in April 2018 so we are pleased that it has listened to us on those points.”
Turning to the other issue of concern for farmers was the possibility of new taxes around the environment in the immediate future.
“While the TWG suggest that the potential benefits (and problems) with environment taxes should be further explored it is pleasing that the TWG recognises that, “taxes are not well suited to all environmental problems”.”
The Government also confirms that there will be no resource rentals in this term of Parliament, as also agreed to in the Coalition Agreement.
Andrew says Feds is pleased the TWG is not proposing any new wealth taxes, including a land tax. “We also agree with the TWG’s support for the current GST regime and that it should remain clean with as few exemptions as possible. The TWG Chair, Sir Michael Cullen, stated that New Zealand has the “broadest and best” GST regimes in the world and it should stay that way – Federated Farmers concurs with his conclusions.”
Federated Farmers is keen to engage further with the TWG as it continues its work to ensure the New Zealand tax system remain simple, fair and equitable to all.
Source: Federated Farmers