The Labour Party is accusing the Government of dragging its feet on axeing provisional tax.
Labour says the tax is an unfair compliance cost on businesses as it forces them to correctly guess their future income, or face penalties.
Revenue Minister Todd McClay says it is too early to say whether provisional tax will be repealed, but he does say he is open to discussing how income tax is collected from businesses.
Labour's small business spokesperson David Clark says the Government has already had extensive discussions on the issue and it now needs to act.
He says the Inland Revenue Department's ageing computer system could be behind the Government's inaction.
Mr McClay says it would irresponsible of the Government to move too quickly on changing provisional tax.
