CBD parking tax win for New Zealand businesses


New Zealand PM, Mr John Key

Meanwhile in New Zealand, business organisations and unions have claimed victory after the Prime Minister backed away from a government proposal to introduce a fringe benefit tax on car parks provided to employees as part of their remuneration.

The tax on inner-city car parks in Auckland and Wellington drew concentrated criticism from a well organised lobby group comprising employer groups, advertising agencies, car parking companies and the Unite union.

Their claim was that the tax would have a negative impact on business while raising a relatively small amount of revenue, coming at a time when all business is struggling with a flat economy.

While government Ministers didn’t agree with the methodology of their opponents’ cost-benefit analysis, they conceded that compliance costs made it sensible not to proceed with the proposal. However Prime Minister Key is playing down the u-turn, saying the Government always intended to “test the boundaries” of the proposal.

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