NZ First Promises Tax Cuts for Small Businesses

New Zealand First party has announced its plan to lower the company tax rate for businesses with an annual turnover below $30 million. The proposed tax cut would reduce the corporate tax rate from 28% to 20%, aiming to encourage more investment and productivity growth in small businesses.

NZ First estimates that this policy change will have an initial fiscal cost of approximately $1 billion, but believes it will be 'more than covered' by increased economic activity, higher employment, and a growing economy in the medium term.

The party argues that lower company tax rates can improve long-run productivity growth and stimulate the creation of new companies. They claim that this policy change is about moving away from short-term policies and towards proper long-term investment in businesses to grow the economy and increase productivity.