United Future announces tax cuts in 2008 for New Zealand

The leader of the government's political partner, United Future and Revenue minister, Peter Dunne has announced that there will be personal tax cuts to go along with the confirmed business tax cuts in 2008.

Peter Dunne's newsletter, sent yesterday, said: "The business tax reduction proposals I announced with Michael Cullen in the Business Tax Review in July will go ahead from April 2008, and they will be accompanied by personal tax adjustments as well, just as we foreshadowed." They would be "the first major cuts by either government since 1996." Peter Dunne was the Revenue minister in 1996 as well.

Finance minister and deputy Prime Minister, Doctor Michael Cullen, said: "Mr Dunne is clearly involved in an important branding exercise for United Future and nothing has changed."

The Prime Minister, Helen Clark, did not comment.

Before Peter Dunne announced the tax cuts, the Government had denied any tax cut proposals until November/December when they could see a clearer picture.

Dunne said that the tax cuts would come in the form of rate cuts and threshold movements.

Cullen said that if tax cuts were offered then they will be for everyone, including those in the low to middle income ranges.

New Zealand First, another political partner of the government, claimed credit in its annual convention on Sunday that they were the ones who convinced Labour the value of tax cuts and changing the personal thresholds.

Cullen last week said, when he announced the surplus; "We are engaged in a business taxation review that will almost certainly produce proposals for tax cuts in the business area to come into force on 1 April 2008 . . . and that may have implications for personal tax rates and thresholds, but I can't give you more information because [it is] not available."

The business tax is dropping three cents to NZ$0.33.