Identifier
Created
Classification
Origin
06WELLINGTON409
2006-05-26 04:38:00
UNCLASSIFIED
Embassy Wellington
Cable title:  

NEW ZEALAND'S POSITION ON "SOLIDARITY TAX" FOR DEVELOPMENT

Tags:  EAIR EIND AFIN APECO NZ 
pdf how-to read a cable
VZCZCXRO8516
RR RUEHCHI RUEHFK RUEHHM RUEHKSO RUEHPB
DE RUEHWL #0409 1460438
ZNR UUUUU ZZH
R 260438Z MAY 06
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC 2832
INFO RUEHNZ/AMCONSUL AUCKLAND 0758
RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION
UNCLAS WELLINGTON 000409 

SIPDIS

SIPDIS

STATE FOR EAP/ANP-DRICCI, EAP/EP-MBHALLA, EB/TRA-MWALKLET AND
EB/ODF-LSPECHT

E.O. 12958: N/A
TAGS: EAIR EIND AFIN APECO NZ
SUBJECT: NEW ZEALAND'S POSITION ON "SOLIDARITY TAX" FOR DEVELOPMENT

REF: STATE 60006

Based on conversations May 26 with officials in the New Zealand
Ministry of Transport and the Inland Revenue Department, the
following responses are provided to the questions in reftel,
Paragraph 8:

UNCLAS WELLINGTON 000409

SIPDIS

SIPDIS

STATE FOR EAP/ANP-DRICCI, EAP/EP-MBHALLA, EB/TRA-MWALKLET AND
EB/ODF-LSPECHT

E.O. 12958: N/A
TAGS: EAIR EIND AFIN APECO NZ
SUBJECT: NEW ZEALAND'S POSITION ON "SOLIDARITY TAX" FOR DEVELOPMENT

REF: STATE 60006

Based on conversations May 26 with officials in the New Zealand
Ministry of Transport and the Inland Revenue Department, the
following responses are provided to the questions in reftel,
Paragraph 8:


1. The New Zealand government does not levy any taxes on airline
tickets and is not considering any such taxes. (International air
travelers must pay a departure fee, but that charge is not a tax and
is assessed by New Zealand's international airports, which are
privately owned. The government recovers its cost for aviation
security through charges assessed on airlines.)


2. There is no precedence in New Zealand for tax streams from one
specific sector being used to fund development or other projects.


3. Tourism taxes are not used to fund general revenues. New Zealand
also does not use dedicated taxes to fund tourism. Tourism
promotion is funded out of general revenues.


4. Post has not been able to determine whether the New Zealand
government would modify its official development assistance if an
airline ticket tax were implemented. However, the government would
be expected to oppose the French proposal to tax airline tickets to
benefit development. The Ministry of Transport sees the proposal as
counter to ICAO Council policy on taxation, in that the tax would
not go toward civil aviation purposes. The Ministry of Transport
official noted that ICAO several years ago proposed a voluntary tax
to be used to help undeveloped economies improve their civil
aviation systems, but that ICAO members opposed the proposal. They
questioned why travelers from developed countries should be assessed
to fix civil aviation systems in undeveloped countries, arguing that
there were more appropriate ways to secure funding, such as through
the World Bank or through properly commercializing the undeveloped
countries' aviation systems.

MCCORMICK