National says NO to capital gains tax

A capital gains tax on propety investment is definitely not on the Government's agenda, says Housing Minister Phil Heatley.

Responding to a call for debate on the issue by Treasury Secretary John Whitehead in early June, in a speech to the Institute of Directors, Heatley said, "Treasury can have their fun.  But, as we have said before, we won't be introducing a capital gains tax on property."

Whitehead said capital gains, or property taxes, would encourage investment into productive activity and that "the time to grab these opportunities is now."

Whitehead's timing, one week after the budget had been anounced seemed curious.  Some have suggested that the Government and Treasury were trying to rally support for the idea of a capital gains tax but Heatley denied the implication.

                                                           NZ Property Investor - July 2009