NZ First Promises Tax Cut for Small Businesses

New Zealand's NZ First party has announced its plan to lower taxes for small and medium-sized businesses. The policy aims to reduce the company tax rate from 28% to 20% for companies with turnover below $30 million. This would have an estimated initial annual cost of $1 billion, but the party claims it will be 'more than covered' in the medium term.

NZ First believes that this reduction can be achieved through increased productivity, higher employment, and a growing economy. A spokesperson for the party stated that lower corporate tax rates can improve long-run productivity growth and stimulate the creation of new companies.

The policy is designed to encourage more investment by small businesses, which in turn will create higher productivity, expand their business, and employ more New Zealanders. NZ First claims that this move away from 'short-term sugar hits' towards 'proper long-term investment' will make New Zealand a more attractive country for businesses to innovate and grow.