Act Party pledges to slash company tax rate

Act leader Jamie Whyte. Photo / Sarah Ivey

The Act Party wants to cut the company tax rate from 28 per cent to 12.5 per cent by 2020, which it says will see a rush of business activity that would boost jobs and wages.

At a speech in Auckland yesterday, Act leader Jamie Whyte said neither Labour or National had closed the gap with Australia.

"In 1999, GDP per person was 25% higher in Australia than in New Zealand. Today it is 65% higher.

"No single measure could do more to promote the economic welfare of New Zealanders than cutting the company tax rate. And it is relatively easy, because company tax raises far less revenue for the government than income tax and GST."

Dr Whyte said reducing the company tax rate from 28 per cent to 20 per cent next year would cost $1.53 billion in lost revenue - which would be made up by scrapping all Government funding to business interests, or "corporate welfare".

Cutting the rate further by 1.5 per cent a year would cost about $150m in lost revenue. By 2020, the company tax rate would be 12.5 per cent.