National dismisses Act claims on tax-cut plans

John Key

National has rubbished Act claims that it has the oil on the party's tax cut plans - reducing the 33c personal rate to 30c.

John Key, National's finance spokesman, said last night that Act was interviewing its typewriter and the claim was wrong.

Mr Key said only three people know about the tax plan: himself, leader Don Brash and party number 4, former leader Bill English.

Mr Key would not reveal when the policy would be released but it is expected to be after Prime Minister Helen Clark announces the election date.

Act's weekly gossip sheet, The Letter, said yesterday that "usually reliable sources" had told the party National would reduce the company and the 33c personal tax rates to 30c. But the 39c personal rate would remain unchanged.

The policy would cost just $900 million.

"National believes those on the top tax rate are already their voters and by leaving the 39c rate 'until economic conditions permit' they will escape the attack that tax cuts only help the rich," The Letter said.

Mr Key said the report was "absolute crap", but he would not say when National's plans would be released.

The party has already said it will cut the company rate to 30c but has not revealed its plans for personal income tax.