New figures released today by Statistics New Zealand show strong progress in Research and Development (R&D) spending under the National-led Government’s R&D framework, while also showing what a Capital Gains Tax will put at risk, National’s Research, Science and Innovation Spokesperson Parmjeet Parmar says.
“Between 2008 and 2018, R&D spending in New Zealand rose from $2.2 billion to $3.9 billion. These results are a reflection of the effective policies implemented by the previous National Government and pre-date any changes by the current Government such as the R&D tax credit,” Dr Parmar says.
“However, the Government puts all that progress at risk with the proposed Capital Gains Tax.
“A Capital Gains Tax would punish start-ups, innovators and small business owners who are willing to take risks and turn their ideas into a commercial business venture.
“It will mean that when a Kiwi start-up, the next Xero or TradeMe, decides to sell their idea or product to the world, the Government would help themselves to a third of the return
“That is not fair.
“It is the entrepreneur and innovator who takes the risk, invests their own money and time and puts in the hard work to turn their idea into a success, not the Government.
“National believes we need to reward hard work, incentivise risk-taking and encourage New Zealanders to invest in new products and new ideas. A Capital Gains Tax would do the opposite.”