“For a long time we've had an imbalance in local tax treatment of investments that has seen New Zealand-based equities at a significant tax disadvantage relative to other investment types.
“The tax changes mean that New Zealand equities will be able to compete more effectively on price, which will be very positive for New Zealand capital markets,” said Weldon.
“The abolition of the grey list, and its replacement by an exempt zone for Australia and New Zealand based on residency and listing, will deliver a ‘one-time switch of competitiveness', which is great news for New Zealand companies, because it frees up access to local capital.
“It's also great news for New Zealand, because a higher proportion of the savings base will be here, in our own country, benefiting our own companies, and serving our own economy,” said Weldon.
NZX's submission on the tax change proposals is available on http://www.nzx.com/aboutus/reports.
