capital gains tax rejection


PHOTO: ROSA WOODS/STUFF Sir Michael Cullen was disappointed but “not in the least surprised” at the Government’s decision. 

Sir Michael Cullen, who chaired the Tax Working Group, said he was disappointed but “not in the least surprised” there would be no capital gains tax.

The Government has abandoned plans to impose a capital gains tax recommended by the Tax Working Group in February. Prime Minister Jacinda Ardern said on Wednesday that there had been no consensus within the Government.

She still believed it would make a difference, but said there was a lack of mandate among New Zealanders for the policy.

A capital gains tax had been vetoed by Winston Peters, leader of Labour’s coalition partner NZ First, Cullen said.