Government abolishing gift duty

Revenue Minister Peter Dunne. Photo / Mark Mitchell

The Government is abolishing gift duty.

Revenue Minister Peter Dunne says the compliance costs are too high for the amount of revenue it is bringing in. He says the protection that gift duty offers in the areas of income tax, creditors and social assistance has only even been incidental and very limited.

Mr Dunne says the protection doesn't outweigh the significant compliance costs which is about $70 million a year to the private sector.

"By any reasonable assessment, this had to go. It just simply didn't justify its retention. I'm not keen on keeping taxes that aren't raising any money for a start."

The duty will be scrapped from October next year.

- Newstalk ZB