In urgent measures that are needed in an attempt to try to rein in the burgeoning budget deficit, business leaders across New Zealand have called on the government for the need of a capital gains tax. Together, the country's business leaders expressed their growing concern as economic conditions start to bear down on the Kiwi economy.
They cite that failure by the government to contain the fiscal deficit may pose long-term risks. The business community has been vocal, indicating this may lead to sustained economic stagnation and erode the financial stability of New Zealand. Pressure by the greens for a capital gains tax is viewed to be a step towards bridging the fiscal gap and striking a good balance in the economy.
According to the executives and other stakeholders, such a capital gains tax would also be very well equated, since these are profits from selling those assets that are currently exempt from taxes. This can well become an important source of revenue to help the government tide over its expenses for essential public investments.
Besides that, the levying of a capital gains tax is also about updating the prevailing tax structure to become more comprehensive and adaptable against the tidal flow of the economic environment. This would position the country to respond better to whatever opportunities and challenges may be thrown at it by the future economy.
With the debate heating up, the government is under increasing pressure to resolve all these issues without much delay. The business community has called upon the political leaders to focus on the agenda of fiscal responsibility and sustainable economic policy. They emphasize that clear action is needed to reassure investors and help to retain competitiveness of the country.
With New Zealand's economic health in the limelight, attention is now focused on the government to see how it will maneuver these fiscal tests and respond to the building roar for reform. The forthcoming discussions of the budget will be a critical moment in shaping the country's economic future.
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Author: Rachel Greene
