The New Zealand Treasury has reaffirmed its support for introducing a capital gains tax as part of efforts to improve the country’s tax system. This advice, made public on 5 December 2024, follows an Official Information Act request by Radio New Zealand seeking details on tax policy recommendations.
In its statement, the Treasury explained that while broadening the tax base is generally a reliable way to increase government revenue, most measures other than a capital gains tax would yield only modest returns.
The recommendation aligns with earlier advice suggesting a capital gains tax could help reduce disparities between company and personal income tax rates while creating a more equitable and sustainable revenue system for New Zealand.
