17 May 2010

Greens favour $4.5b capital gains tax

1:57 pm on 17 May 2010

The Green Party has issued its alternative budget proposals, saying it would introduce a capital gains tax to raise revenue.

The Government will issue its Budget on Thursday and is expected to announce reductions in income tax rates and an increase in GST.

The Green Party says if it was in Government, it would introduce a capital gains tax, except on family homes, that would raise up to $4.5 billion per year.

It says the money raised would cover the cost of its other proposals, including making the first $10,000 of income tax-free and building 6000 state homes.

The party also says household power bills could be lowered through a two-step pricing policy.

Co-leader Metiria Turei says the first portion of every householder's power bill should be set at a low price.

She says this would most benefit households that don't use much power, for example, pensioners living alone.