PHOTO: Antonia Watson, FILE
ANZ’s CEO, Antonia Watson, is calling for a capital gains tax, stating it’s time for such a measure. During an interview with RNZ’s Guyon Espiner, she emphasized that implementing a capital gains tax would require someone “politically extremely courageous.”
Watson’s comments come as a growing number of influential New Zealanders advocate for a capital gains or wealth tax, although the topic has historically been politically sensitive.
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Political Party Responses
Labour Party
The Labour Party, which previously campaigned on a capital gains tax in 2014 but faced significant electoral defeat, is now re-evaluating its stance. Deputy leader Carmel Sepuloni noted that discussions around tax fairness are becoming more prevalent. While no decisions have been made yet, she acknowledged the changing conversation around progressive tax policies. Sepuloni highlighted the need for a fair approach to taxing investment properties, emphasizing that the party would announce its tax policy if elected.
National Party
Prime Minister Christopher Luxon dismissed Watson’s proposal, stating that New Zealanders shouldn’t be taxed more, especially in challenging economic times. He argued that economic growth, not increased taxation, is the solution to recession. Finance Minister Nicola Willis echoed this sentiment, asserting that New Zealand’s tax levels are normal and expressing concerns that a capital gains tax could deter investment. She insisted that instead of increasing taxes, the focus should be on controlling government spending.
Green Party
The Green Party has long supported a progressive tax system and has called for a capital gains tax to address wealth disparities. Co-leader James Shaw has previously urged government members to take action on this issue, highlighting widespread expert consensus in favor of a CGT.
ACT Party
In contrast, the ACT Party advocates for lower taxes. Leader David Seymour rejected the idea of a capital gains tax, arguing that other issues, like the difficulty of building houses, are more responsible for inequities in New Zealand.
New Zealand First
Winston Peters, leader of New Zealand First, has consistently opposed a capital gains tax, stating there is no compelling rationale for such a measure.
Te Pāti Māori
Te Pāti Māori campaigned on a capital gains tax last year, advocating for wealth redistribution. Co-leader Rawiri Waititi highlighted the potential financial gains from implementing such a tax.
Overall, while calls for a capital gains tax are growing, political consensus remains elusive, with each party offering differing perspectives on the issue.
SOURCE: RNZ