Tax Law Change Needed To Help Rebuild And Preserve Buildings
An amendment to the Income Tax Act 2007 is urgently needed to help businesses rebuild and get back on their feet after earthquakes, says New Zealand First Building and Housing Spokesperson, Ron Mark.
“Today New Zealand First has sought an amendment to the Act to make earthquake strengthening work on buildings tax deductible.
“At present only earthquake repairs are tax-deductible while the legislation provides no incentive for building owners to strengthen their buildings against earthquakes.
“In fact, the legislation just makes it easier and cheaper for owners to demolish earthquake prone buildings and walk away.
“As a result buildings of historical merit are being lost.
“Another anomaly of the existing legislation is that it works against provincial New Zealand. For example, owners of buildings in North Canterbury and Marlborough have to pay the same amount as owners in Wellington and Christchurch to strengthen their buildings, even though their buildings are worth far less.
“New Zealand First wants to make our tax law fairer for all concerned and that is why we have introduced the amendment,” Mr Mark says.