23 May 2012

Budget aims to close tax loopholes

7:07 pm on 23 May 2012

The Finance Minister has confirmed the Budget on Thursday will include further moves to close tax loopholes as the Government tries to broaden its tax base.

Bill English says it will target higher incomes earners to stop them from structuring their financial affairs in a way to avoid paying their share of tax.

Mr English inspected the 2012 documents as they rolled off the printers in Petone on Wednesday.

He says while there will be new tax measures, they will not be anything like a capital gains tax.

Instead, he says the changes will involve continuing to close holes in the tax system to improve its fairness.

Mr English says the 2012 Budget will be a sensible one that will stop Government debt rising.

Later in Parliament, he shrugged off criticism from the Opposition that economic growth had fallen short of what had been forecast in the 2009, 2010 and 2011 budgets.

Mr English will deliver his fourth Budget in Parliament on Tuesday from 2pm.