New Zealand income tax cut
New Zealand income tax cut

Today the government passed a new package of measures, after raising the prices of goods and products in the previous period, the government decided to reduce the income tax in New Zealand.

Today, the New Zealand government revealed in its new draft budget to Parliament yesterday that it will reduce private income tax on a large scale in an attempt to offset the increase in overall taxes on goods and services.

The GST has risen from 12.5% ​​to 15% since last October, but New Zealand Finance Minister Bill English said that no one will be affected by this increase thanks to the lower income tax and increased social security benefits.

The new tax cut includes reducing the tax on income earners of NZ $ 70,000 or more annually by 5 percentage points to 33% and reducing the corporate tax by two percentage points to 28% starting next April.

At the same time, the pensions for those over the age of 65 have been increased by 2%, starting from October 1, to compensate for the expected increase in retail prices due to the increase in the GST.

In turn, English said this was the largest tax reform package in New Zealand in nearly 25 years. He added that these amendments will be in the interest of the ordinary New Zealander and will encourage more savings and help families to live a good life.

In this regard, he said that the person whose income reaches 50 thousand New Zealand dollars annually and who lives in a rental house or pays the mortgage loan installments will save about 15 dollars a week from his taxes.

 On the part of the family, which has two children and has an annual income of 75,000 NZ dollars, you will get approximately 25 dollars per week.