New Zealand govt “tinkers around R&D tax deductibility,” says Labour

New Zealand’s National Party Government’s call for feedback to resolve problems around the tax deductibility of R&D expenditure for businesses is more tinkering and shows a government out of touch with the needs of business, says the Labour Party’s Innovation, Research & Development spokesperson Megan Woods and Revenue spokesperson David Clark.

"We don’t need small scale thinking, we need a big bold initiative that will allow businesses to do what they do best: innovate," says Megan Woods, in a report posted on trade group NZBIO’s web site.

"Steven Joyce [Economic Development Minister] and Todd McClay [Associate Minister of Health] have admitted that our tax system is getting in the way of New Zealand businesses’ ability to innovate and reach their potential. They know there is a link between our tax system and innovation. This latest announcement is nothing more than further tinkering around the edges," says Mr Clark.