“Taxpayers will be relieved at the news the Government has backed down on a comprehensive capital gains tax”, says ACT Leader David Seymour.
“But the uncertainty created by the Government will have done real harm to the economy.
“The Tax Working Group process has put small business owners, farmers, KiwiSavers, and others through months of anxiety.
“People have held off investments. Business confidence has plummeted. New Zealanders have been rightly concerned about the future of our country. This has all been for nothing.
“Today's backdown is due in no small part to Kiwis getting involved and telling the Government very clearly they didn’t want this tax. Almost 5,000 New Zealanders signed up to ACT’s anti-capital gains tax campaign.
“This decision shows just how similar the Labour and National parties are, particularly on tax. Labour campaigns from the left, and National from the right, but both ultimately govern from the centre. The end result is a heavier tax burden for New Zealanders.
“National and Labour are equally responsible for ever-growing fuel taxes, and both appear comfortable with the State taking the equivalent of a third of GDP in tax.
“Since 2015, Labour and National have been able to agree on a ‘bright-line test’ capital gains tax, with the only disagreement being over the time period to which it should apply.
“ACT is the only political party that has been consistently opposed to all forms of capital taxation.”