New Zealand needs a capital gains tax to redirect investment into productive businesses, Labour says.
Labour party finance spokesman David Parker was responding to the latest ASB investor confidence survey, which showed that rental property is once again New Zealanders’ favourite investment.
"A capital gains tax is needed to quell a prolonged increase in property speculation that will only continue the trend in declining home ownership,” he said.
"We aren’t going to grow as a country if we keep putting our investment money into property speculation because of a tax bias that hurts our productive exporters.”
He said New Zealanders should be encouraged to invest in other areas, such as the export sector.
“ This creates jobs, helps increase wages and limits our reliance on overseas lenders. A capital gains tax will encourage investment towards good, productive businesses while also helping to limit the increase in house prices, making homes for Kiwi families more affordable."