Grow Wairarapa (Economic Development Strategy & Action Plan)
There has been a lot of activity in the Grow Wairarapa space over the last few weeks. The Governance Group, Steering Group, and all three Action Groups – Knowledge Intensive Industries, Food Action and Tourism groups, have met to discuss the first steps in implementing the Action Plan. To keep up to date with what’s been happening read the Grow Wairarapa blog.
Capital Gains Tax scrapped
Many of you will be pleased to hear that the Government has not been able to gain a mandate to support a Capital Gains Tax. In our recent business confidence survey, over 40% of you felt that it would have worsen the business environment for your own organisation.
Your comments said that the tax would have penalised people for saving and working hard and acted as a handbrake by creating a disincentive to increase investment or productivity, and ultimately opportunities for owners to grow their businesses. You also felt that the proposed rate was punitive and not universal enough to counter the creation of avoidance strategies.
Members also seemed worried that it would have been expensive to administer and would have increased compliance costs, especially for the small to medium-sized businesses who operate within our region.
This year’s Wellbeing Budget will be announced on 30 May and is expected to broaden the Budget’s focus beyond economic and fiscal policy by using the Treasury’s Living Standards Framework to inform the Government’s investment priorities and funding decisions.