Annual Report 2008: Part two - Key business results
Tax revenue
In 2007-08 we assessed tax revenue of $51.2 billion, $2.6 billion (5.3%) more than in 2006-07. The revenue we assess represents about 87% of core Crown revenues[3].
Total revenue was near to forecast. However, direct taxes were $817 million over forecast and indirect taxes $815 million under forecast. Over the last five years total revenue has grown by 35%, largely due to buoyant economic conditions and the consequent growth in tax collected from companies and individuals. Over the same period, indirect taxes (mainly GST) have grown by 13%. The change in economic circumstances during 2007-08 however, was reflected in the decline of indirect taxes by 2%.
A breakdown of the actual revenue assessed into direct and indirect taxation[4] and tax type is shown below.
| 2003-04 $ billion |
2004-05 $ billion |
2005-06 $ billion |
2006-07 $ billion |
2007-09 $ billion |
|
|---|---|---|---|---|---|
| Direct tax | 29.2 | 32.8 | 37.3 | 38.5 | 41.3 |
| Indirect tax | 8.8 | 9.2 | 9.5 | 10.1 | 9.9 |
| Total | 38.0 | 42.0 | 46.8 | 48.6 | 51.2 |
Figure 5 -
2007-08 Tax revenue by tax type
[Larger version of image | Long description]
For further information on revenue collected by Inland Revenue, see Part six of this report, "Financial schedules for administered accounts - Crown". Outturn data for tax from all sources is available at: www.treasury.govt.nz/government/revenue/taxoutturn/index.htm
To show the composition of tax revenue across other countries' tax administrations, figure 6 shows the percentage of major tax types for the 2004-05 tax year. The table also shows that the composition of Australia's and New Zealand's tax revenue is similar.
| Ireland | Canada | United Kingdom | Australia | New Zealand | |
|---|---|---|---|---|---|
| Income tax | 26% | 42% | 34% | 49% | 51% |
| Company tax | 11% | 12% | 9% | 19% | 19% |
| GST/VAT | 29% | 4% | 20% | 16% | 21% |
| Other | 34% | 42% | 37% | 16% | 9% |
Date published: 15 May 2009
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