National says no to capital gains tax

Responding to a call for debate on the issue by Treasury Secretary John Whitehead this week in a speech to the Institute of Directors, Heatley said, "Treasury can have their fun. But, as we have said before, we won't be introducing a capital gains tax on property."

Whitehead talked about "significant adjustment and change" so the economy can emerge strongly from the current recession.

He focused on taxation, regulation, the role of the public sector and making New Zealand an attractive investment destination.

"At the risk of being chased down by an angry crowd with pitchforks and flaming torches, yes, this should include consideration of moving the boundaries to tax more capital gains - for example on investment property - and shifting more of the tax base towards consumption," he said.