Winston Peters says today's abandoned CGT was 'complex' and not the means to close the gap between our rich and poor

Deputy Prime Minister Winston Peters says today’s abandoned capital gains tax was “complex” and not the means to close the gap between New Zealand’s rich and poor.

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The Government today announced it has abandoned plans to introduce the CGT tax. Source: 1 NEWS

The Government has this afternoon confirmed they will not introduce a capital gains tax (CGT).

Prime Minister Jacinda Ardern said she was disappointed, as the introduction of a CGT was one of the main issues she campaigned on, and she believed it could have made New Zealand's taxation system "more fair".

At a press conference today, 1 NEWS asked Mr Peters which part of the CGT scheme stood out for him, to which he responded, “its absolute complexity” and lack of “success anywhere in the world.”

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Up to $2 million was spent on the exercise, with over 90 recommendations made to government. Source: 1 NEWS

“There are better ways we might reform our tax system to give people a fairer go, and where the gap between the rich and the poor can be closed, but this is not the pathway,” he said.

In a press statement today, Mr Peters said NZ First welcomed the decision not to implement the tax.

“There is already an effective capital gains tax through the Bright Line test brought in by the last National Government and New Zealand First’s view is that there is neither a compelling rationale nor mandate to institute a comprehensive capital gains tax regime,” said Mr Peters.

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Jacinda Ardern said her government had realised they did not have a mandate from the public to do so. Source: 1 NEWS

“We also welcome the announcement that the coalition government will be urgently exploring options with the Inland Revenue Commissioner, in concert with central and local government, for taxing vacant land held by land bankers and reviewing the current rules for taxing land speculators. Tightening these rules was a priority for New Zealand First,” he said.