Cullen rejects company tax cut

Finance Minister Michael Cullen has ruled out cutting the 33 per cent company tax rate in next Thursday's Budget.

Act leader Richard Prebble asked Dr Cullen in Parliament yesterday whether he remembered his pledge to reduce the company tax rate "when fiscal conditions permit".

Dr Cullen said he recalled the speech but there were higher Budget priorities than a company tax cut.

As well, Budget forecasts would show the Government intended running only a small cash surplus this year.

"The Budget will show not billions of dollars of spare cash hanging around but, in fact, a modest borrowing programme for the coming three years," he said.

- NZPA