Dunne: No Govt decision yet on future tax mix

Revenue Minister Peter Dunne today told the EMA'S Tax Summit 2009 in Auckland that the Government has made no decisions on New Zealand's future tax mix.

"We are certainly encouraging debate, and of course we will look closely at the work of the Tax Working Group, which is being co-ordinated by Victoria University, and indeed the Henry Review of the Australian tax system, given the significance of our relationship with Australia.

"However, let me be very clear: the Government has made no decisions - I repeat no decisions - on the future tax mix," Mr Dunne said.

"Those who assume that every utterance or paper released by the Tax Working Group is really a coded effort by the Government to indicate its policy intentions have simply read one conspiracy novel too many," he said.

"There is a long way to go yet. The Working Group has not yet reached its final position, let alone presented it to the Government, so no one should be getting too far ahead of themselves.

"Not only has the Government not discussed these matters, but when it looks to do so, it will need to negotiate them with its support partners," he said.

Mr Dunne went on to say that the Government's overall tax vision today reflects the changes and challenges it faces.

"These can, I think, be condensed into three main issues. The first is the changing economic and fiscal environment. The second is the need to change our tax system to reflect a changing international environment.

"The third is the need for a more efficient and effective - rather than bigger - Public Service; one that provides value for money and meets the public's increasing expectations for service," he said.

"The focus is on having tax policy that meets our ongoing fiscal challenges, and producing an internationally competitive tax system that is supported by a world-class tax administration," Mr Dunne said.