Brash, Key at odds on tax cuts

National has backed away from reports it will deliver tax cuts by Christmas, which were fuelled by its finance spokesman, John Key.

It now claims to have promised only a mini-Budget signalling the cuts by the end of the year.

Tax cuts were likely to be introduced next year, with April "the first practical date" as long as the financial climate was conducive, Mr Key said yesterday.

Two newspapers reported on Sunday that National was promising tax cuts by Christmas.

The stories pre-empted a speech by National leader Don Brash delivered later that day, which said the party would deliver a Budget by the end of the year.

Dr Brash then made no mention of delivering tax cuts by Christmas. But Mr Key had earlier led the newspapers to believe this would be the case.

The Herald on Sunday reported Mr Key saying: "It would be my hope that the mini-Budget would give a Christmas bonus to all working New Zealanders. The only caveat is if inflation tracks dangerously high."

The Sunday Star-Times said: "Key said tax changes would be 'effective immediately' after the election; taxpayers would certainly be paying less tax within the next financial year."

Mr Key said yesterday the promise of tax cuts by Christmas "was their [the newspaper's] line, not mine".