Nuk Korako: If the CGT is bad for Māori, then it’s bad for all New Zealanders

Opinion 08/03/2019
Money. Photo: File.

By Nuk Korako, National’s Maori Development spokesperson.

OPINION: The Government likes to say implementing a Capital Gains Tax is about fairness and equity.

Fairness is thrown around a lot. The Government uses this argument as a justification for the tax, that it would make our tax system fairer, that a capital gains tax is about equity, about taxing the rich.

But by excluding Māori from being captured by a Capital Gains Tax, the Government is contradicting its own position.

Māori aspirations are the same as all New Zealanders. Māori want more money in their back pockets and to now their tribal assets are working for them.

Māori work hard, scrimp and save, start businesses, create jobs and pay wages, just like all hard working Kiwis do.

All Kiwis, would be impacted by a Capital Gains Tax, it would hit KiwiSavers, retirement savings, small rental properties and farms.

By excluding iwi from a Capital Gains Tax, the Government would be sending a clear signal that such a tax would have negative implications for Māori and on their assets.

If a Capital Gains Tax will negatively impact Māori, then it will negatively impact all New Zealanders.

The Government is mistaken in thinking a Capital Gains Tax is the answer, that it can maintain the economy’s momentum and lift productivity by taxing more and exempting Māori at the same time.

A Capital Gains Tax will act as a massive disincentive to save, invest or build a productive business. The Government would literally be taxing our prosperity.

National believes all New Zealanders already pay enough tax. The Government should be looking at tax relief for all, not taking even more out of the wallets of New Zealand families.

We don’t believe there should be any new taxes, for all Kiwis.

If you work hard all your life to get ahead, for you and your family, it is not fair that you should be taxed on your hard work. 

If a Capital Gains Tax is bad for Māori, then it’s bad for every New Zealander. There shouldn’t be exemptions for some. That’s not the Kiwi way.

Nuk Korako is National’s Maori Development spokesperson.