Cullen Will Live Up To Tax Cut Expectations, According To Clark

by Jason Gorringe, Tax-News.com, London

11 February 2008

New Zealand's Prime Minister, Helen Clark, has spoken out this week, suggesting that Finance Minister Michael Cullen's tax cut preconditions will be met.

This reassurance came shortly after some of New Zealand's most important business groups - including The Business Roundtable, Federated Farmers, New Zealand Chambers of Commerce and the Institute of Chartered Accountants - urged Dr Cullen to set personal, business and trust tax rates at 30%.

Cullen has, in the past, suggested that cuts would only be implemented under three conditions - firstly, cuts should not boost inflation, secondly, they should not increase inequality and thirdly, tax cuts should not lead to increased borrowing or reductions in key services.

In her speech earlier in the week, however, Clark assured critics that the conditions will not impede the implementation of the tax cuts, stating:

"They don't make them impossible, otherwise he would not be saying he is going to announce a programme of them."

She reportedly added that: "I think the conditions will be met."

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