Capital Gains Tax Ruled Out

The Labour-led Coalition Government will not proceed with the capital gains tax recommended by the Tax Working Group.

The Prime Minister, Jacinda Ardern, said that that the three parties in Government had been "unable to find a consensus". She expressed regret that she could not get the CGT over the line:

"While I have believed in a CGT, it's clear many New Zealanders do not. That is why I am also ruling out a capital gains tax under my leadership in the future."

Despite the focus on CGT, the Tax Working Group had made a number of other recommendations for amending the tax system. The Prime Minister said that "the majority of [these other] recommendations will either be investigated further or have formed part of our work programme."

Read the press release in full