Labour calls for capital gains tax

Labour party finance spokesman David Parker was responding to the latest ASB investor confidence survey, which showed that rental property is once again New Zealanders’ favourite investment.

"A capital gains tax is needed to quell a prolonged increase in property speculation that will only continue the trend in declining home ownership,” he said.

"We aren’t going to grow as a country if we keep putting our investment money into property speculation because of a tax bias that hurts our productive exporters.”

He said New Zealanders should be encouraged to invest in other areas, such as the export sector.