Tuesday, New Zealand Prime Minister John Key said his government will introduce measures this year to reform the tax system. The government intends to announce those measures as part of the Budget in May.

Key added that the tax system should encourage saving and boost the productivity of investments. The system should also create incentives for people to work hard and improve their skills. 'The Government agrees with the Tax Working Group that New Zealand relies heavily on the taxes most harmful to growth, particularly corporate and personal income taxes,' said Key.

Further, he said, 'We will not be developing any proposals for a land tax, a comprehensive capital gains tax, or a risk-free return method for taxing residential investment properties.' The government plans to make changes to the way property is taxed, which will result in increased government revenue and more fairness for taxpayers. These changes will be announced in the Budget, Key added.

Source: Financial: New ...