PREAMBLE:

There are 4 major legs to a good taxation system. It must be fair to all citizens, it must be easy to collect, it must be predictable and it must not negatively affect the economy.

The Conservative Party believes that a Financial Transaction Tax meets these objectives far better than our current GST so would look to replace GST with FTT.

 SHORT POLICY SUMMARY

POLICIES

The Conservative Party is committed to:

* Implementing the Low ETT (Low Every Transaction Tax) at the rate of 0.5% per transaction on every transaction, incoming and outgoing.

– The Low ETT would replace GST and would result in a drop in the prices of all consumables and assets.

– This would automatically increase the purchasing power of wages at all levels and would most benefit those on smaller salaries.

– Removing GST would ease the compliance costs of small businesses and reduce the administration costs for the government (IRD).

– Banks would automatically add the 0.5% on each transaction and regularly deposit into the government account, ensuring a continuity of supply to government accounts.

– Transfers between accounts belonging to the same individual would be exempt.

– We would evaluate the success of the Low ETT to see if there were sufficient funds recovered to lower the bottom income tax rate.

* Conservative Party would repeal the Emissions Trading Scheme,and target monies received to the cleaning up of the nation’s waterways.

* Conservative Party would oppose the implementation of a capital gains tax.

* Conservative Party would introduce income splitting for families with couples in a legally recognised relationship (marriage/civil union) who have children. We recognise the economic hardships many families experience as they try do best by their children. We propose that families who meet this criteria be eligible to split their income to take advantage of lower tax rates, resulting in a better financial position for a substantial proportion of New Zealand families who have chosen to limit the working hours of one parent for the wellbeing of the children.

* Introduce an undeveloped land tax on residential zoned land that is not developed.

* Investigate the introduction of a stamp duty on all property bought by overseas interests or purchased as investments. The more investment properties, the higher the stamp duty. Similar to Singapore model .

* Ensure that tax on Alcohol better covers the costs incurred by society through alcohol abuse.