11 Dec 2013

Govt says extension of tax break for oil rigs pragmatic decision

7:40 am on 11 December 2013

The Government says a law change to extend a tax break for foreign oil companies is a pragmatic decision.

A bill before the House extends a tax exemption for oil rigs and vessels gathering data on potential oil and gas sources in New Zealand waters.

In 2004 the law was changed so that oil companies could operate as long as they needed to without paying tax.

The Government is now looking to roll that over for another five years.

The Green Party says the Government should not be giving tax breaks to foreign companies, while ordinary New Zealand businesses have to pay tax on all of their profits.