Sluggish economic growth has ripped three quarters of billion dollars out of corporate tax revenue for the government.The Crown accounts for the four months to October show a $1.1 billion drop in overall tax revenue, with the bulk of the drop – $784
Sluggish economic growth has ripped three quarters of billion dollars out of corporate tax revenue for the government.
The Crown accounts for the four months to October show a $1.1 billion drop in overall tax revenue, with the bulk of the drop – $784 million – coming in lower-than-forecast corporate tax receipts. That is 28% lower than forecast in the May budget.
GST is also below forecast, by $190 million (4.2%), reflecting New Zealanders’ new-found frugality, with less money being spent.
“Overall, an underlying weakness remains in private consumption, with households exercising greater than expected spending constraint,” says the Treasury’s accompanying statement.
The main good news was better-than-expected returns on the government’s investment portfolio: both the New Zealand Superannuation Fund and the Accident Compensation Corporation received gains of $1.1 billion and $287 million above forecast respectively.
