A reduction in the Maori Authority tax rate included in new amending legislation passed under urgency in Parliament has been welcomed by the Federation of Maori Authorities.
The change will reduce the current tax rate for the majority of Maori Authority members from 19.5 per cent to 17.5 per cent to align it with the lower personal tax rates announced in the 2010 Budget . Maori Authorities are taxed as a proxy for their members and the reduction will apply from the 2011-12 income year, the same effective date as the similar company tax rate decrease.
“The change is the fulfilment of a promise FOMA made to its members at the time of the Budget,” says FOMA Chief Executive Ron Mark. ” We are pleased and appreciative that the Government has acted so promptly to address what was an unintended anomaly and oversight in the Budget.”
“However, while we are very happy with the 2 per cent adjustment, there is still a case for a further reduction as most shareholders of Maori Authorities are pensioners on miniscule incomes and they should only be taxed at the minimum rate of 12.5 per cent,” said Mr Mark.
“The positive response FOMA received to its request for the adjustment is another demonstration of the Government’s understanding of the importance of the role Maori authorities are playing in the economy and its willingness to work with us for the benefit of the whole community,” said Mr Mark