BusinessNZ has congratulated the Government for its decision not to proceed with a capital gains tax.

Chief Executive Kirk Hope said the proposed tax would have hit businesses hard, reducing funds available for investment and job growth and increasing their compliance burden.

“Our members have been very clear that they did not see the justification for an expensive new tax that would have reduced the competitiveness of the New Zealand business sector for no discernible gain.

“BusinessNZ was appreciative of being included in the working group process and commends much of what is in the report, but in the end could not support a capital gains tax.

“The Government is to be commended for listening as New Zealanders made their views clear.

“It is clear that NZ First has played a significant role in a capital gains tax not proceeding, and the business community will thank them for not compromising their concerns.

“We feel the process of working group proposals followed by widespread consultation has been successful in delivering a result that the majority of New Zealanders can support.

“With the Governments decision not to proceed with a capital gains tax decision, the benefits of our relatively broad-based, simple and fair tax system have been retained, and New Zealanders’ confidence in the tax system strengthened.”

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