Tuesday, July 9, 2013
New Zealand's improving economy suggests that the "lift in tax revenue" recorded for the first eleven months of the 2012-13 financial year will last through to its end, Finance Minister Bill English has said.
Commenting on the latest operating deficit before gains and losses (OBEGAL) figures, English said that further improvement in tax revenue had resulted in a deficit NZD763m (USD595.3m) lower than was forecast for the eleven months to May 31. Core Crown tax revenue was up NZD502m on target, at NZD54bn.
The Treasury attributes this largely to higher corporate tax revenue, which came in NZD496m above target. Better than expected corporate profitability, together with strength in financial markets, are seen as the key factors driving this performance.
Total revenue was NZD54bn higher than in the same period of 2011-12. The Treasury says that this reflects an increase in the effective tax rate of sole traders, trusts, and other individuals.
According to English, the Government remains on track for a return to surplus in 2014/15.