13 Oct 2009

PM rules out flat tax rate

3:09 pm on 13 October 2009

Prime Minister John Key has ruled out suggestions by the Treasury that the Government should consider a flat tax rate.

The option is included in papers obtained by Radio New Zealand under the Official Information Act, but Mr Key says the proposal is not fair or equitable.

Mr Key says the Government is getting a range of advice on tax from both the Treasury and the Tax Working Group.

Labour Party deputy leader Annette King also opposes a flat tax rate and questions why the Treasury is even looking at the option if the Government has no intention of adopting it.