18 Jul 2011

National raises fresh criticism of Labour tax policy

8:26 am on 18 July 2011

The National-led Government has made fresh criticism of Labour's tax policy, saying it would add $18 billion dollars to net debt over the next 15 years.

Associate Finance Minister Steven Joyce says under Labour's plan the country would have to borrow more each year.

Mr Joyce says Labour has not taken account of the loss of income from not partially selling State-owned assets and of paying interest on Government debt

He says it also provides no detail about how it would raise more money by clamping down on tax avoidance and evasion.

But Labour's finance spokesperson David Cunliffe says Labour has taken all those factors into account in its costings.

Mr Cunliffe says Labour will toughen up on tax avoidance and evasion, including taxing income earned by family trusts.