The Government is seeking feedback on possible changes to tax rules that it says may be hindering the development of a domestic bond market.
It is looking at whether the approved issuer levy should be zero rated rather than 2% on interest paid on corporate bonds.
The New Zealand corporate bond market is currently a small, but growing, part of the financial system, with corporate bonds on issue having risen in value from $12 billion to $23 billion since 2005.
A paper suggests that reducing the levy to zero on bonds could make it marginally cheaper for New Zealand firms to issue bonds to overseas investors.
