The election tax war heats up

A pre-election bidding war is heating up, with National now claiming New Zealanders could see the benefit of tax cuts by Christmas.

Party leader John Key is considering pulling forward a package of reductions, if he wins the election later this year, but denies he's been pressured into bringing any tax cuts forward.

He says it's not necessary to wait until after a Budget, which is normally held in May, to legislate for tax changes.

But some reports suggest this amounts to the National leader being forced into a policy change, because Labour too is now promising lower personal taxes.

Key says if the election is held early enough, parliament could push through a package before the end of the year.

He says New Zealanders have to ask why it's taken Labour so long to start talking about reducing personal taxation.

Key said he believed there was a strong case for New Zealanders being able to keep more of what they earn, and his party was committed to an ongoing programme of lower taxes.

However, Labour still has an advantage on tax cut timing.

As the party of government, it is in a position to time cuts for just before the next election.