Small firms’ hopes dashed

Press, 28 July 1989, Page 5

Small firms’ hopes dashed

Pre-Budget optimism by smaller businesses has been dealt a blow, says the president of the Canterbury Manufacturers’ Association, Mr Bruce Fraser. Commenting on the $175,000 exemption on land tax being abolished, and the doubling of the requirement for more frequent tax payments, Mr Fraser said last evening both these moves would be costly for the smallersized firms. “It brings many more companies into the land tax payment net at a time when they will be facing additional work in meeting the Government’s requirements for more frequent tax payments,” he said. “This Budget will do nothing to encourage Canterbury’s economic recovery, especially new job creation and endorsing the work ethic which is now needed to get the economy working. “If anything the Government’s indication of a future move towards some form of a capital gains tax will create further uncertainty and hinder investment decisions. While Mr Fraser welcomed the Government’s continuing reduction in its fiscal deficit, he said it should be realised that the Government was increasing its tax take by 13 per cent at a time when inflation was about 4 per cent.