Source: ACT Party
“The Finance Minister’s answers in the House this afternoon show he clearly favours the introduction of a fully-fledged capital gains tax”, ACT Leader David Seymour says.
“Grant Robertson said there was “no doubt” investment needed to be shifted away from the housing market.
“The Government has ruled out taxing the family, and therefore the largest asset class a CGT would cover is our stock of rental housing.
“In background papers released online, the Tax Working Group was told told by officials that a GCT will reduce the supply of rental housing and increase rents.
“A CGT will therefore be paid for by poorer New Zealanders in the form of higher rents. The taxpayer will also be forced to shell out even more in accommodation supplements.
“These facts aside, a CGT is incredibly complex, would increase compliance costs significantly, and would raise no additional revenue for the Crown.
“Robertson would be wise to back away from the idea”, says Mr Seymour.