New Zealand day.

Here are a couple of articles from the Telegraph concerning New Zealand. Concerning trade and taxation.

Trade deal with New Zealand in reach after Jacinda Ardern's landslide victory, Liz Truss says

Ministers hope to accelerate talks with New Zealand now that the Japan trade deal has been completed

Source - Daily Telegraph - 18/10/20

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A trade deal with New Zealand is now in sight, Liz Truss has said as she prepares to step up negotiations in the wake of Jacinda Ardern’s landslide election victory.

Allies of the International Trade Secretary said Ms Ardern’s re-election had provided the opportunity to press ahead with talks, with the second round of negotiations due to commence on Monday.

The New Zealand Labour party’s resounding victory, which has handed it 64 seats in the country’s parliament, also leaves open the possibility that she will no longer need to form a coalition. 

Government sources pointed out that the election had removed a potential obstacle to progress in Winston Peters, New Zealand’s former deputy prime minister and leader of the coalition party New Zealand First. 

Mr Peters, who earlier this year claimed that the UK was not “match fit” for trade negotiations, has been ousted from parliament after his party crashed in the polls. 

A Government source told The Telegraph: “We’re excited about the prospect of a deal with the Kiwis

"This one has flown slightly under the radar with everything else that is going on, but Liz feels that Jacinda Ardern’s landslide win gives us the opportunity to pick-up where we left off before the election and strike a really forward-leaning deal in areas like tech and the environment. 

“It’s part of our strategy to deepen trading ties with Pacific nations and like-minded countries who share our belief in democracy, free enterprise and the rule of law.”

With a trade deal with Japan complete, Ms Truss's team now hope to accelerate talks with New Zealand and are pushing to remove tariffs on goods such as British buses, cars, motorhomes and caravans, as well as chocolate and gin. 

They also hope a deal will pave the way for more trade in services and greater investment between the two countries. 

A series of agreements with New Zealand, Australia and Japan are seen as key to the UK joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership - one of the largest trade blocs in the world. 

Ahead of the resumption of talks, Ms Truss said: “With Jacinda Ardern’s Government returned with a fresh mandate, I am looking forward to intensifying negotiations and making real headway on a deal over the coming months.

“New Zealand is an important ally, long-standing friend and a leading voice in global trade. We want a high-standards deal in key areas like digital and the environment, and to show the rest of the world that together we are prepared to advance rules-based free trade at a time of heightened protectionism.”

Chancellor urged to cut taxes like Australia and New Zealand

Governments around the world cut taxes while Rishi Sunak mulls upping levies at home

Source ,- Daily Telegraph  19/10/20

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Rishi Sunak is facing calls to follow the lead of other English-speaking nations and cut taxes to boost the economy instead of putting them up.

The Centre for Policy Studies, the think tank co-founded by Margaret Thatcher, has said the Chancellor should follow the lead of Australia and New Zealand and ease the tax burden on business during the crisis. It urged him not to raise corporation, capital gains or dividend duties.

Tax rises will be needed eventually to plug the £322 bn budget deficit, but doing so now in the midst of a recession would be an act of “self-sabotage”, it said.

Australia is bringing forward a series of planned changes to its income tax system to boost household incomes. By raising income tax thresholds, the coalition government hopes citizens will spend the uplift rather than hoarding it, which will put money back into the economy to help its recovery.

New Zealand has introduced new breaks for businesses as part of its Covid-19 response. It is allowing firms to carry forward losses incurred in 2020-21 to offset their corporation tax bills in the following year.

Norway has introduced similar measures by bringing in a two-year “carry loss” provision.

So far, Mr Sunak has cut VAT for businesses in some of the sectors hit hardest by the pandemic, including the hospitality and leisure industry, with a reduction in the 20pc rate to 5pc that will last until March.

He has also introduced a stamp duty holiday on properties worth up to £500,000, which has also reduced the levy for higher-value homes. This also ends in March.

But the Chancellor has suggested taxes at some point will have to go up.

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