A capital gains tax will impact small business owners in the region says Tauranga MP and National opposition leader Simon Bridges.
Finance Minister Grant Robertson and Revenue Minister Stuart Nash say the Government will
take a measured response to the final report of the Tax Working Group (TWG), released today.
The TWG proposes a series of new taxes, including a tax on the capital gains of businesses, shares, property and other investments.
That would be offset by increasing the threshold for the lowest tax bracket.
Simon says the new taxes are “insulting to the Kiwi way of life” and are about “envy and ideology”.
“New Zealand is a country of small businesses and Tauranga is particularly so. I know this city well.
“It is full of people who started a little businesses, they might only employ one or two people, maybe it is them by themselves and they worked hard and played by the rule and paid their taxes and at the end they want to sell that business on so that all their work over that 30-some years will get them somewhere.
"This will take a third of that.”
He says a National Government will repeal a capital gains tax.
Grant and Stuart say any changes to the tax system will not be implemented until 2021, after the next election, to give people a chance to vote on it.
“The independent report finds that overall our tax system is clear and simple but there is room for improvement.
"There is some unfairness that we need to address. We will work through ways to do this to make the system fairer and more balanced,” Grant says.
“Our aim is to ensure the system is fair for families and businesses and that it offers balance across the wider economy,” Grant says.