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Labour Party on Economy and Taxes

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Labour Party opposes lowering company tax rates

Labour reduced company tax from 33 percent to 30 percent in 2007. “We have also increased depreciation allowances for companies and introduced a research and development tax credit to encourage such activity to stay in New Zealand,” a party spokesperson says.

Labour Party opposes a tax-free zone at the bottom end of the income scale

Labour does not support an tax-free zone at the bottom of the income scale. But a party spokesperson says that “on 1 October 2008, Labour reduced the lowest tax rate to 12.5% from 15% and increased the threshold from $9,000 to $14,000. The threshold will increase to $17,500 in 2010 and $20,000 in 2011."

Labour Party I support of oppose the $700m Fast Forward Fund to fund research in the food and pastoral sector

Labour strongly supports the Fast Forward Fund. “Our science and innovation policy is driven by our commitment it, the largest single investment in R&D in New Zealand's history,” a party spokesperson says.

Labour Party supports paying GST on food

Labour supports paying GST on food. “Removing GST on food is expensive and not targeted at people who are most in need, instead doing so would actually give the biggest benefits to people on higher incomes. A better way to give people who are genuinely in need of some relief is through targeted assistance, which is why we cut taxes at the lowest rate, increased Working for Families and increased Superannuation,” a spokesperson says.

Labour Party opposes amending the Reserve Bank Act to include growth and employment targets

Labour opposes this. “It is important to sustain the independence of the Reserve Bank and continue the current policy target agreement which mandates flexible inflation targeting,” a spokesperson says.

Labour Party supports toll roads

Labour argues that for some roading projects a Public-Private Partnership may be the better option, and in that case tolls may be applied. However, a party spokesperson adds, “we have legislated to require that there must be a free alternative road to any new toll roads. We do not believe Kiwis should be forced to pay tolls."