Key all but rules out property capital gains tax

Key virtually ruled out a capital gains tax at his post Cabinet press conference yesterday afternoon, listing the reasons why such taxes are a bad idea: they're not efficient, cause distortions and don't prevent property market booms anyway.

However, he is much less downbeat on other forms of property tax, such as a land tax or putting increased onus on existing provisions in the Income Tax Act aimed at property investors.

Asked about public comments from various members of the Tax Working Group indicating interest in some form of land tax, Key said he hadn't seen enough detail about those statements to comment, and he would wait to see what would come out of the working groups, final report.