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New Zealand increased the minimum salary and raised taxes on the richest, two measures that will come into effect tomorrow and that are part of the president’s efforts Jacinda ardern to fight inequality and boost the economy after the impact of the COVID-19.
The new minimum wage will rise from 18.90 NZD (13.19 USD or 11.27 EUR) to 20 NZD (13.96 USD or 11.93 EUR) an hour – about $ 52,000-, according to the announcement that New Zealand Prime Minister Jacinda Ardern made on Monday when announcing this measure that is part of key electoral promises and that will benefit 175,000 people.
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Also from Thursday will increase the tax maximum up to 39 percent to the income of people who earn more than 180,000 NZD (125,654 USD or 107,316 EUR) – $ 469,000, when before the cap was 33 percent. The measure is expected to affect two percent of taxpayers.
According to official estimates, this new tax threshold, which is part of a series of tax measures, will provide an additional NZD 550 million (USD 384 million or EUR 328 million) to the treasury coffers for the financial year 2021 and NZD 634 million (USD 443 million or 378 million EUR) by 2024.
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Ardern noted Monday after the Cabinet meeting that the series of measures that take effect on April 1 “represent” real and long-awaited improvements in the support we provide to our most vulnerable (residents). “
The minimum wage increase, which affects many key workers during the COVID-19 pandemic, has been praised by unions and criticized by businesses that claim that they have not yet recovered from the economic damage left by COVID-19, which led to various lockdowns. , especially in the city of Auckland.
Precisely when about 1,000 businesses have recently closed, and when especially many people in the hospitality sector tell us that they can not handle the increases …
“Precisely when about 1,000 businesses have closed recently, and when especially many people in the hospitality sector tell us that they can no longer handle the increases because they have problems paying rents,” the opposition leader said Wednesday. Judith Collins, to the chain TVNZ.
According to data from Ministry of Social Development In New Zealand, companies in the country have hired more staff since the beginning of the year, although there are still more than 200,000 people receiving unemployment benefits, almost 60,000 more than in mid-March, when the pandemic began.
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A report from Treasury Ministry published last December indicates that the deficit for fiscal year 2020/21, which ends on June 30, will be NZD 10.1 billion (USD 7.156 billion or EUR 5.89 billion), which is below forecast, although debt net will increase to 45.6 percent of GDP by 2023-24.
New Zealand, which closed its borders to curb the pandemic and ordered one of the strictest lockdowns in the world in March when it only had 50 cases, accumulating with 2,141 confirmed infections and 26 deaths.
EFE
