Cut business tax now, says Brash

National and the lobby group Business New Zealand yesterday complained that business tax cuts look likely to be more than two years away - in election year.

Finance Minister Michael Cullen said yesterday that business tax reform would probably not occur before April 2008 because there needed to be consultation over a discussion document on it, yet to be released, then legislation passed has to be passed, as well as needing a reasonable lead-in time - for Inland Revenue.

Dr Cullen said on National Radio that even if the discussion document were ready today, the Government would struggle to get changes implemented by the start of the 2007 business year.

"We are for that date concentrating on the Kiwisaver scheme designed to lift our savings to help adjust our long-term current account deficit problem."

National Leader Don Brash said the Government was moving at "glacial" pace and did not realise the need for urgent action.

"Dr Cullen is fiddling with a garden hose while the house in burning."

Dr Brash said Dr Cullen could cut the rate to 30c straight away to enhance growth.

Business New Zealand chief executive Phil O'Reilly said a review of the business tax regime should not take more than two years to complete.

Business might be wondering why consultation on the recommendations of the McLeod Tax Review five years ago was going to be duplicated. "A straightforward review and swift implementation of a lower company tax rate as soon as possible would send the strongest signal of support to the business community."