Workers carry unfinished vibrators at Ningbo Yamei plastic toy factory, on the outskirts of Fenghua, Zhejiang province, February 13, 2012.
Workers carry unfinished vibrators at Ningbo Yamei plastic toy factory, on the outskirts of Fenghua, Zhejiang province, February 13, 2012. Reuters

The half a million small businesses (SMS) operating in New Zealand are unanimous in demanding cheaper and unlimited broadband connectivity. They also want less hassles in the matter of compliance with tax laws, revealed a recent survey.

The study undertaken by Australian accounting firm MYOB had a sample of more than 1000 SMEs. The SME sector in New Zealand constitutes 97 per cent of the domestic businesses and employs 30 per cent of the workforce, reported Stuff.Co. Nz.

Foreign Investment

The MYOB survey found the business owners seeking policies that will reduce the compliance burden. Nearly 60 per cent of the respondents opposed the introduction of a Capital Gains Tax. A vast majority of companies (69 per cent) demanded reduction in internet prices, while 67 per cent wanted tax rules simplified.

Adam Ferguson, MYOB General Manager said SMEs are struggling to manage compliance responsibilities. The simplification of tax regime especially provisional tax was of high priority to SME operators. Cheaper and unlimited broadband was the main demand for a majority of SMEs. Some of them wanted more controls on foreign investment.

No Capital Tax

SMEs found a capital gains tax as the most unpopular policy while 39 per cent were against removing the 90-day trial employment period. The survey noted two-thirds of the country's small businesses reposed more faith on National Party's economic management. They had less faith in other parties and the backers of Labour Party were at 8 per cent.

A report in Voxy also mentioned the happiness of New Zealand SMEs at tax policy of the country. The latest Grant Thornton International Business Report (IBR) has only Sweden ahead of New Zealand SMEs, which had higher satisfaction of tax policy and tax risk. In New Zealand, 26 per cent of companies saw tax policy and tax risk as a high priority and 40 per cent saw it low priority. Another 34 per cent does not attach any priority at all. Greg Thompson, Partner and National Director, at Grant Thornton said the level of comfort of Kiwis in tax matters was borne by the stability and transparency existing in the tax system.