<p>Jacinda Ardern's ruling Labour Party plans a new higher tax rate of 39% for people earning over NZ$180,000 ($118,908) and promised no further tax hikes next term if it is re-elected in the October 17 poll, the party said on Wednesday.</p>.<p>Ardern's Labour Party, comfortably ahead in the election contest according to opinion polls, said the new top income tax rate will only affect 2% of New Zealanders, while there will be no change in taxes for the remaining 98% of the population.</p>.<p>"The new rate will cost $23 a week for an individual earning NZ$200,000, but it will make a big difference to the country’s ability to maintain the investments needed for the economy to bounce back," Finance Minister Grant Robertson said in an announcement of the party's tax policy.</p>.<p>The new tax policy is forecast to add an annual revenue of NZ$550 million to the economy, which has taken a hit due to the coronavirus pandemic.</p>.<p>The highest tax rate in New Zealand is currently 33% for income over NZ$70,000.</p>.<p>Robertson said the party will not implement any new taxes or make any further increases to income tax next term.</p>.<p>Labour will also be prepared to implement a Digital Service Tax (DST) so it can tax revenue earned by multinational digital firms such as Google, Facebook and Amazon, extending a global effort to bring global tech giants into the tax net.</p>.<p>He said current projections estimate a DST will raise between NZ$30 million and NZ$80 million of revenue a year.</p>.<p>Ardern's Labour Party formed a centre-left coalition government in 2017 after reaching an agreement with nationalist New Zealand First Party and the Green Party.</p>.<p>The government's early and decisive response to the coronavirus pandemic has helped limit community transmission but the economy has been battered as businesses were shut and people stayed indoors.</p>.<p>The government has already spent billions of dollars on a wage subsidy scheme and other measures to support businesses and protect jobs.</p>
<p>Jacinda Ardern's ruling Labour Party plans a new higher tax rate of 39% for people earning over NZ$180,000 ($118,908) and promised no further tax hikes next term if it is re-elected in the October 17 poll, the party said on Wednesday.</p>.<p>Ardern's Labour Party, comfortably ahead in the election contest according to opinion polls, said the new top income tax rate will only affect 2% of New Zealanders, while there will be no change in taxes for the remaining 98% of the population.</p>.<p>"The new rate will cost $23 a week for an individual earning NZ$200,000, but it will make a big difference to the country’s ability to maintain the investments needed for the economy to bounce back," Finance Minister Grant Robertson said in an announcement of the party's tax policy.</p>.<p>The new tax policy is forecast to add an annual revenue of NZ$550 million to the economy, which has taken a hit due to the coronavirus pandemic.</p>.<p>The highest tax rate in New Zealand is currently 33% for income over NZ$70,000.</p>.<p>Robertson said the party will not implement any new taxes or make any further increases to income tax next term.</p>.<p>Labour will also be prepared to implement a Digital Service Tax (DST) so it can tax revenue earned by multinational digital firms such as Google, Facebook and Amazon, extending a global effort to bring global tech giants into the tax net.</p>.<p>He said current projections estimate a DST will raise between NZ$30 million and NZ$80 million of revenue a year.</p>.<p>Ardern's Labour Party formed a centre-left coalition government in 2017 after reaching an agreement with nationalist New Zealand First Party and the Green Party.</p>.<p>The government's early and decisive response to the coronavirus pandemic has helped limit community transmission but the economy has been battered as businesses were shut and people stayed indoors.</p>.<p>The government has already spent billions of dollars on a wage subsidy scheme and other measures to support businesses and protect jobs.</p>