The National Party says Labour's proposed policy of reducing the tax on overseas royalties earned by New Zealand companies is another example of its uncosted proposals.
[image:3811:half:right]Labour released its economic development policy in Auckland on Friday.
The party says companies based on intellectual property, such as software companies or firms with a patented invention, can operate from anywhere in the world and too many are moving overseas to take advantage of lower tax rates.
If elected, Labour says it would consider reducing tax on royalties to keep the companies in New Zealand, which would likely increase the tax take from that sector.
But National's finance spokesperson Bill English told Radio New Zealand it is another uncosted Labour proposal that will add to debt.
"They haven't shown how they're going to pay for that kind of tax cut. It seems a bit odd, because they are putting six or seven new costs on business on the one hand - which is going to make it harder for them to export and grow jobs - and then come up with this contradictory policy on the other hand."
Labour says its policies have been fully costed.
