'We are not setting out to grab revenue' – Government announces expert group to look at tax system

November 23, 2017

Critics say, however, that the tax working group is just a rubber stamp to introduce a capital gains tax.

The Government's new tax working group has been defended by Finance Minister Grant Robertson today, who says it aims to make a "better balanced tax system".

Finance Minister Grant Robertson today unveiled the terms of reference for the group, part of the government's 100-day plan.

"Individual wage earners, businesses, asset owners, and speculators should pay their fair share of tax.

"Right now we don't think that's happening," he said.

The working group will consider a capital gains or land tax, but not on the family home, a progressive company tax system and a tax system that delivers positive environmental outcomes - though not specifically a carbon tax.

GST could be implemented for online purchases under $400, but may be taken off things like fruit and veg and tampons.

"We are not setting out to increase or grab revenue, we are setting out to get a fair and more balanced system," Mr Robertson said.

Sir Michael, a former Labour finance minister from 1999 to 2008, is the only known member of the group so far.

The other eight members will be announced by Christmas, Mr Robertson says.

He also says there will be no major changes before the 2020 election so voters can have their say.

There will be an interim report next year with the final recommendations delivered in early 2019.

National finance spokesperson Steven Joyce said there were already taxes in place to deal with property speculation.

"Someone who buys and sells for profit has their income taxed," Mr Joyce said.

He also said Sir Michael had talents, but he wasn't independent. 

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