Tax Justice Aotearoa (TJA) has expressed its support for the Green Party’s initiative in launching a discussion document on the idea of an excess profits tax and the mechanisms for delivering it.
“In the wake of Covid-19, when people are struggling and governments are increasing their debt to cope, this debate couldn’t be timelier,” said TJA Chairperson Glenn Barclay. “Governments worldwide stepped up to look after their populations; meanwhile, some companies amassed huge amounts of wealth by profiting from the pandemic. It is appropriate that we have the conversation about whether some of those excess profits can be retrieved to be used for the public good, including hospitals, schools, roads, national parks and more.”
“This is not a new idea,” said Glenn Barclay. “Excess profits tax have been used before to levy taxes on companies who have profited excessively at different times, often in times of misfortune for others. New Zealand has levied such taxes, particularly during wartime, and we should do it again.”
“The discussion document raises important questions, for example, whether the mechanism for an excess profits tax should be ongoing or one off and future focused or retrospective. Should we look at adapting existing mechanisms like companies’ tax, or should we develop something new? Tax Justice Aotearoa welcomes the opportunity for debate on this important issue.”
Tax Justice Aotearoa believes the foundation of a modern society is a just taxation system, comprising both revenue gathering and expenditure. This system should be based on fairness and equity; protect, promote and uphold human rights; facilitate social and economic well-being; promote financial stability; and accomplish these goals in a way that is environmentally sustainable.
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