Election 2014

10 Oct 2008

Government says business groups' proposals would hit coffers

6:38 pm on 10 October 2008

The Revenue Minister says changes proposed by the Stock Exchange and New Zealand Institute would leave a significant hole in the Government's coffers.

The organisations say political parties are ignoring the dire financial situation overseas.

They say businesses should be able to defer payment of provisional tax for two years and get 100% depreciation on capital investment.

United Future leader and Revenue Minister Peter Dunne says the suggestions would dramatically reduce the Government's income when it is already predicted to fall in the next few years.

New Zealand First leader Winston Peters has dismissed the proposals as a knee-jerk reaction.

He says his party would do more for the economy, by guaranteeing bank deposits of up to $100,000 and targeting high interest rates.