29 Jun 2012

PM will never introduce CGT

9:50 pm on 29 June 2012

Prime Minister John Key says his Government will never introduce a capital gains tax, as it will only encourage the housing market.

Speaking to more than a thousand business leaders in Auckland on Friday morning, at a tax briefing organised by the accounting firm KPMG, Mr Key told the audience that capital gains taxes only work if they are applied to everything.

But he says they do not work, when exemptions are made, such as the family home.

Mr Key said at the Finance Minister Bill English's request, IRD is hiring more staff, who are trawling through returns making sure property developers pay a capital gains tax on their profits.