New Zealand raises minimum wage and raises taxes on the richest

Also starting Thursday, it will raise the maximum tax on income to 39% for those earning more than 180,000 New Zealand dollars (US$125,654), compared to 33% previously.

The measure is expected to affect 2% of taxpayers.

According to official estimates, this new tax limit, which is part of a series of tax measures, will provide an additional 550 million New Zealand dollars (US$384 million) to the Treasury treasury for fiscal year 2021 and $634 million. Zeelanders (US$443 million) by 2024.

Ardern said after a cabinet meeting on Monday that the series of measures that take effect on April 1 “represent” real and long-awaited reforms in the support we provide to our most vulnerable (residents).

The hike in the minimum wage, which affected many key workers during the pandemic, has been praised by unions and criticized by businesses that claim they have not yet recovered from the economic damage left by COVID-19. Due to which various lockdowns have been found. in the city of Auckland.

Leader of the Opposition Judith Collins said, “Well, when recently about 1,000 businesses have closed, and when a lot of people, especially in the hospitality sector, tell us they can’t take more with the increase because they have to. There is a problem in paying the rent.” Wednesday. For the series TVNZ.

According to data from New Zealand’s Ministry of Social Development, companies in the country have hired more employees since the start of the year, although more than 200,000 people are still receiving unemployment benefits, nearly 60,000 more than in mid-March When the pandemic.

A Treasury Ministry report published last December indicated that the deficit for fiscal year 2020/21, which ends on 30 June, would be NZ$10.1 billion (US$7.156), lower than forecast. However, net debt will increase to 45.6%. GDP by 2023-24.

New Zealand, which closed its borders to curb the pandemic and ordered one of the world’s strictest lockdowns in March, when it had only 50 cases, would have accumulated with 2,141 confirmed infections and 26 deaths. is.