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Revenue Minister Peter Dunne has hinted that changes to tax rates could put around $1 billion a year back in the pockets of taxpayers.
In a speech as United Future leader, Mr Dunne sketched out progress in the business tax review to an employers' group in Auckland.
Mr Dunne and Finance Minister Michael Cullen are looking at lowering the corporate tax rate to 30c and a range of tax incentives for research and development, exporting and technical changes. "They amount to a programme which, if implemented in full, would cost just under $2 billion a year," Mr Dunne said.
Dr Cullen has said many times the size of the programme will depend on how the Government's revenue forecast shapes up.
Because of the growing differential between the corporate rate and personal rates of taxation, Dr Cullen has said this would have some impact on personal rates.
- NZPA