New tax incentives encourage individuals and businesses to spend for economic recovery. The effects of the Covid-19 pandemic have affected the world economy and in New Zealand, many people have suffered its effects. A year ago, in September 2020, New Zealand entered a recession. Many sectors including retail, hospitality, transportation were impacted and more due to the travel ban and nationwide lockdown.
A survey was conducted from the G20 countries and New Zealand that revealed that 66% of the individuals surveyed were in favour of tax systems being used to help benefit citizens. The survey from the Association of Chartered Certified Accountants (ACCA) interestingly uncovered different levels of trust of authorities in the tax system. Professional accountants make up 55% of level of trust, some of the highest among others such as tax lawyers and politicians.
It is important to advance tax corporation and policies to address current issues. New Zealand has already been a part of a tax system overhaul when helping Solomon Islands. Some of these changes include trained and upskilled staff, public information campaigns for taxpayer knowledge to help Solomon Islands recover from the Covid-19 pandemic.
Now it is up for New Zealand to help itself. A well-oiled tax system can shape a better future and better economic growth.
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