Tax changes put New Zealand top in World Bank business survey

Changes in paying taxes have launched New Zealand into the top spot on the World Bank's 2017 Doing Business Report.

The government Wednesday welcomed the ranking-New Zealand's first in the No. 1 spot out of 190 economies- up from second last year and third in 2014.

"For the past two years we have ranked second after Singapore, and in 2014 we were third behind Singapore and Hong Kong," Economic Development Minister Steven Joyce said in a statement.

The report is made up of 10 different indicators that either constrain or facilitate business.

New Zealand maintained its first ranking in five indicators: starting a business with the smallest number of procedures required and the shortest time to start a business dealing with construction permits, registering property, getting credit, and protecting minority investors.

It also fell in four indicators: getting electricity, trading across borders, enforcing contracts, and resolving insolvency.

New Zealand rose in rank from 13th last year to 11th this year in the paying taxes category.

The report said New Zealand had made paying taxes easier by abolishing its cheque levy and less costly by decreasing the rate of accident compensation levy paid by employers, but at the same time, it made paying taxes more costly by raising property tax and road user levy rates.

"There is always room to improve further and the government will continue to work hard to make it easier to do business in New Zealand," Joyce said. Endit