Few people at campaign launch in favour of capital gains tax

Tax Justice Aotearoa spokesman Paul Barber and his supporters at Parliament for the launch of its capital gains tax campaign. Photo / Mark Mitchell

A group campaigning for a capital gains tax says it would add billions of dollars to Government coffers that could be used to bridge the gap between the haves and have-nots.

About 10 people were present for the launch of the campaign by Tax Justice Aotearoa NZ at Parliament this morning.

The Taxpayers' Union also showed up and noted that there was about the same number of media there as campaign supporters.

The Government is preparing to respond to the Tax Working Group report sometime this month, including its recommended comprehensive capital gains tax on investment property, shares, farming and others businesses at the taxpayer's highest income tax rate.

Exemptions would apply to the family home and personal goods such as art, jewellery and vintage cars.

Tax would be applied after an asset is sold and on the gain in value between April 2021 and the sale price.

Tax Justice Aotearoa spokesman Paul Barber, who is a policy adviser for the NZ Council of Christian Social Services, said the group was not pushing for any specifics when it came to a CGT.

"We want to see greater fairness, transparency and equality in our tax system. At the moment we have nothing. Any capital gains tax would be step further.

"The Tax Working Group clearly showed that inequalities with income and wealth are too high. There is a big hole in our tax system because we have no capital gains tax.

"We're one of the few developed countries who do not have a capital gains tax. This is nothing new. It's nothing outlandish. It works really well in other parts of the world and could benefit us all by bringing billions of dollars in revenue to help run those essential services that make our country a good place to live."

He said a majority of New Zealanders wanted a CGT, but Taxpayers' Union executive director Jordan Williams said the opposite was true.

"It's a shame than more media turned up than supporters for the CGT," Williams said.

Williams questioned whether the group was using taxpayers' money for its campaign, which included about $15,000 spent on advertising in newspapers, bus shelters and billboards.

But Barber said it wasn't, and that he had made a mistake on Radio NZ this morning when he said a taxpayer-funded group was part of the campaign.

"There's no public money involved."

Campaign supporters include the Public Health Association, New Zealand Council of Christian Social Services, Council of Trade Unions, Public Service Association, Hui E! Community Aotearoa, Equality Network, Closing the Gap, Poverty Action Waikato, and UCAN (United Community Action Network).

The group has also launched a petition in support of a CGT, which had 389 signatures by 11.30am today.