Wednesday, 17 April 2019 15:32

Farmers agree on call against CGT

Written by 
Andrew Hoggard. Andrew Hoggard.

The Government's decision not to proceed with a capital gains tax has been approved by farmers. 

Federated Farmers says it is heartening evidence that the coalition government is willing to put well-reasoned and practical considerations in front of ideology.

"It’s clear the coalition partners have listened to widespread concerns that a capital gains tax has too many downsides, including massive administration costs and the potential to put the handbrake on the progress of small and medium businesses vital to our economy," Feds economics spokesperson Andrew Hoggard says.

"It seems to us that New Zealand First has been pivotal in this decision, and we appreciate their pragmatism.

"The Prime Minister spoke this afternoon about new measures to tackle land banking and land speculation, an approach that has a much better chance of tackling our housing affordability issues than a CGT."

Federated Farmers is pleased the Government is committing to looking at the compliance cost reduction ideas mentioned in the Tax Working Group’s report.

"There were a number of these that are worth looking at, including increasing various thresholds (e.g., for provisional tax) and simplifying depreciation and Fringe Benefit Tax, and removing resident withholding tax on close company-related party interest and dividend payments," says Hoggard.

"We’re also pleased with the assurance that there will be no resource rental for water or fertiliser tax — at least in this term of Government."

 

More like this

MPI’s behaviour on M. bovis beastly

Farmers affected by Mycoplasma bovis need help and support, but MPI treats them as guilty parties, claims Mid-Canterbury Federated Farmers dairy chair Chris Ford.

Goalposts shift

The farming sector has engaged in the national effort to draft a credible response to climate change so New Zealand is seen internationally to be doing its bit.

Climate change consultation was ‘a farce’

Federated Farmers Waikato president Andrew McGiven believes animal numbers would have to be effectively halved to meet the 2050 target set by the Government's new Zero Carbon Amendment Bill.

 
 

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Nice

Fonterra has copped a fair bit of stick from the Hound over the years. However, on this occasionyour old mate…

No idea

A mate of the Hound reckons it is rather ironic – and totally appropriate – that the failing Australian-owned and controlled…

 
 

» Connect with Rural News