Reducing private income tax and increasing comprehensive taxes on goods and services
Reducing private income .. The New Zealand government revealed in its new budget bill presented to Parliament yesterday that it will cut private income tax on a large scale in an attempt to offset the increase in comprehensive taxes on goods and services.
Reducing private income Income tax cut
The Goods and Services Tax has risen from 12.5% to 15% since the first of last October, but New Zealand Finance Minister Bill English said that no one will be harmed by this increase thanks to the reduction of income tax and the increase in social security benefits.
The new tax cut includes reducing the tax on people with income of 70,000 New Zealand dollars or more annually by 5 percentage points to 33% and reducing the corporate tax by two percentage points to 28% starting next April.
Reducing private income .. At the same time, the retirement salaries for those over 65 years old were increased by 2%, starting from the first of last October, to compensate for the expected increase in retail prices due to the increase in the goods and services tax.
This is New Zealand’s largest tax reform package in nearly 25 years, English told Parliament. He added that these amendments will be in the interest of the average New Zealander and will encourage more savings and help families to live well.
Reducing private income .. He noted that a person with an annual income of NZ$50,000 who lives in rented accommodation or pays mortgage payments will save about $15 a week from their taxes. A family with two children and an annual income of NZ$75,000 will receive approximately $25 per week.