The Hutt Valley Chamber of Commerce has welcomed the Government’s decision not to pursue capital gains tax at this time.
Helen Down, CEO of Hutt Valley Chamber of Commerce says, “It was clear from our recent business confidence survey, the threat of capital gains tax was having a significant negative impact on the confidence of the local business community.”
However, while businesses were concerned about the potential CGT, they were equally concerned about any future taxation policies in general, where it relates to business. This came through strongly in the recent business confidence survey.
The Hutt Valley Chamber of Commerce March Business Confidence Survey, sponsored by Red Hot Business Coaching, polls businesses from throughout the Hutt Valley and Wellington each quarter. Disturbingly, the latest results showed business confidence for the Wellington regional economy had tumbled by almost 20% when compared to the previous quarter.
While 33% were concerned about CGT, the same number also expressed anxiety over future taxation policies in general. This is a significant increase on the 11% polled in the December quarter.
Since December, the perceived economic outlook for the Wellington region had trended downwards by almost 20%, with 68% of businesses expecting a similar or better economy in 12 months’ time, compared to 88% in the December quarter.
The latest business confidence survey continued to show concerns around general uncertainty of government policies, as well as difficulties with labour shortages and finding the right staff. Hutt Valley businesses also continue to be frustrated with the lack of investment in transport infrastructure.
Helen Down says, “While no CGT will be a huge sigh of relief for many businesses in the Hutt Valley, there is concern this is not the end of the Government’s taxation plans on business and business owners. Hopefully with capital gains tax now firmly off the table and some additional assurance from the Government around general taxation policies, we will see a reverse in the trend of declining business confidence in the next quarter.”