19 Jan 2010

Report due on tax changes

9:21 pm on 19 January 2010

Tax is back on the Government's agenda for the start of 2010, with a tax working group due to issue its final report on possible changes to the tax system on Wednesday.

The Cabinet has its first meeting after the summer break on Tuesday and the Prime Minister, John Key, has already identified economic growth as the major theme for the year ahead.

The tax working group was set up last March. A Radio New Zealand political reporter says it is expected to set out a range of options for possible reforms, including personal tax cuts and increases to consumption and property taxes.

The Finance Minister, Bill English, says options put forward by the group will be considered, but any tax changes will need to be close to fiscally neutral. He says the tax system should promote work, investment and savings, rather than spending and borrowing.

The House sits again on 9 February.