Labour calls for capital gains tax
Wednesday 14 November 2012
New Zealand needs a capital gains tax to redirect investment into productive businesses, Labour says.
Labour party finance spokesman David Parker was responding to the latest ASB investor confidence survey, which showed that rental property is once again New Zealanders’ favourite investment.
"A capital gains tax is needed to quell a prolonged increase in property speculation that will only continue the trend in declining home ownership,” he said.
"We aren’t going to grow as a country if we keep putting our investment money into property speculation because of a tax bias that hurts our productive exporters.”
He said New Zealanders should be encouraged to invest in other areas, such as the export sector.
“ This creates jobs, helps increase wages and limits our reliance on overseas lenders. A capital gains tax will encourage investment towards good, productive businesses while also helping to limit the increase in house prices, making homes for Kiwi families more affordable."
Comments from our readers
Sign In / Register to add your comment
Modest house price movement suggests a flattening market, but it’s too soon to declare a turning point, according to Trade Me Property.
Booming commercial property sector could offer alternatives to investors worried about what lies ahead for the residential property market.
The Reserve Bank’s new investor-targeted LVR rules come into effect on 1 October, but there are solutions to the restrictions for investors willing to think laterally.