WELLINGTON, Oct. 3 (Xinhua) -- The New Zealand government is backing businesses to succeed with a new tax incentive that aims to unlock further spending on research and development.
Research, Science and Innovation Minister Megan Woods on Wednesday announced the design of the research and development (R&D) tax incentive following extensive consultation with businesses.
"We listened to the business community. We ran a thorough consultation process and as a result we have made significant changes to the tax incentive originally proposed. The rate will be higher, the threshold lower, and the definition more inclusive," Woods said in a statement.
"This is a huge opportunity for businesses to invest in R&D, which will help us increase our productivity and boost wages," she said.
The country's spending on R&D lags behind many of its international competitors, so the government has set aside one billion NZ dollars (657 million U.S. dollars) for this incentive, aiming to increase R&D spending to two percent of GDP over 10 years, Woods said.
