KEY POINTS:
An entrepreneur has claimed the current tax system is biased in favour of housing investment.
Electronics guru Selwyn Pellett, the backer of two Deloitte/Unlimited Fast50 winning companies, has put his case to a Parliamentary Select Committee Inquiry into Monetary Policy.
He argued it is immoral, unjust and economically flawed that property investors can write off tax losses against PAYE and shift tax burden onto other taxpayers.
Mr Pellett said more needs to be done to encourage investment in domestic businesses to create a level playing field.
He said that would creates jobs and incomes here, whereas housing sees people go offshore to generate income, to come back and buy an over-inflated property.
He claimed he would like MPs to consider allowing capital gains tax to be applied to secondary properties.
Mr Pellett said he realises that would be political suicide, but claimed the negative effect could be offset if politicians from both sides of the house agreed to back the move.
- NEWSTALK ZB
