"The Government is funnelling hundreds of millions of dollars into New Zealand’s largest businesses and ignoring the engine room of our economy", says ACT Leader David Seymour.
"According to official advice, 85 per cent of the Government’s new $1 billion R&D tax credit scheme will go to just 330 firms.
Research, Science and Innovation Minister Megan Woods today tabled the Taxation (Research and Development Tax Credits) Bill in Parliament.
The Regulatory Impact Statement for the bill says: "A relatively small set of firms perform the vast majority of R&D. 85 per cent is performed by around 330 firms. The financial benefits will be concentrated among the largest R&D performers.”
"New Zealand has 530,000 businesses, but the vast bulk of the $1 billion in R&D tax credits will accrue to just over 300 firms.
"Small businesses will feel ignored by the Government. They are facing a tsunami of additional costs and anti-growth policies - a higher minimum wage, higher petrol prices, and additional compliance costs as a result of the Employment Relations Amendment Bill.
"The Government should cut the billions in corporate welfare handed out each year, give every firm in New Zealand a tax break, and let them make their own investment decisions.
"Greater investment in research and development is important, but this isn’t the way to do it.
"The Government should lower the corporate tax rate for every firm, encouraging greater investment and growth, more jobs and higher wages for workers", says Mr Seymour.