The Government is seeking feedback on potential 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 a zero rate rather than 2% on interest paid on corporate bonds.
The corporate bond market is a small but growing part of the financial system in New Zealand. Corporate bonds have risen in value from $12 billion to $23 billion since 2005.
The Institute of Chartered Accountants' tax director, Craig Macalister, says it's not clear whether removing the levy will result in more foreign investment in bonds issued by New Zealand firms.