HortNZ levy vote referendum looms
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Adding new taxes will undermine New Zealand’s tax system, says Horticulture New Zealand chief executive Mike Chapman.
Chapman says New Zealand’s tax system is admired for being simple, efficient, and fair.
Horticulture New Zealand has made a submission to the Tax Working Group on the Future of Tax saying it does not support land tax. The submission is endorsed and supported by a further 17 organisations.
"Any land tax would be a double tax, as land owners already pay rates to local government based on the value of their land," Chapman says.
As supported by the NZIER report Taxing times, Horticulture New Zealand says that using the tax system to create housing affordability, reduce the cost of productive land, and drive environmental outcomes, is asking too much of the tax system, will result in distortions, and create further unintended consequences.
"The value of land used for primary production is the key ingredient for the lending of money to support that same economic enterprise. Any reduction in the value of land will quickly translate into less funding being available to support growth, and the financial viability of the business. For that reason alone, we submit that a tax on land will have counterproductive effects that will reduce the overall taxation received by the Government," Chapman says.
"We are of the view that one category of tax payer should not be singled out and taxed in ways that all other taxpayers are not. This raises concerns about equity and fairness.”
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
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