New Zealand tax cuts pledge

The New Zealand government pledged tax cuts for businesses to help generate economic growth while warning that the country’s strong economy was beginning to feel the effects of soaring oil prices and other external factors.

Finance minister Michael Cullen said there would be “quite significant tax reductions” to businesses.

Cullen made the comments as he warned that the first signs of economic slowdown were appearing in New Zealand, caused by high international oil prices, uncertainty about the strength of the US recovery and whether Japan could sustain a stronger growth rate given its government debt problem.