Does NZ need a capital gains tax?

8:32 AM Wednesday Jul 6, 2011

Photo / Paul Taylor

There has been a suggestion tenants will be the ones to suffer if New Zealand introduces a capital gains tax.

It is expected to form part of Labour's tax policy, going into the November election. The family home would be excluded from such a proposal, which is likely to levy a 15 per cent tax when a property is sold.

Property Investors'Federation president Andrew King says it will put people off selling their investment properties, reducing the supply of properties on the market and sending rents up.

Does NZ need a capital gains tax? Here is the latest selection of Your Views:

David Craig (New Zealand) | 09:08AM Wednesday, 06 Jul 2011

Andrew King and John Key are not telling the whole story. Houses are well overpriced, and a CGT would slow the speculative investment that has driven prices beyond ordinary NZers reach.

Landlords will be paying less to buy new properties and are less overleveraged; their costs should come down, and rents with them. Investors like those Andrew King represents would still be investing (or saving) and the returns on all those investments will be subject to the same tax regime.

Housing might still be attractive, but it wont be the only thing people seeas worth investing in. Maybe current landlords would invest in an industry that does something useful, creates jobs, increases ordinary NZers assets?

Jack P (Napier) | 09:23AM Wednesday, 06 Jul 2011

Yes, we need a property gains tax. It is a business for investors and they should be taxed for it like any other business. Property investments never stopped in the United States and they have had a property gains tax as long as I can remember. Property investors should help carry the load. By the way, what a weak response from John Key.

Alice (Mt Albert) | 09:23AM Wednesday, 06 Jul 2011

Thank god, finally someone has the balls to propose a CGT. It is well overdue and will redirect investment dollars into more productive areas of the economy.