Govt to talk to Treasury before finalising tax cuts

RADIO NEW ZEALAND: The Government will decide the size and timing of personal tax cuts at the end of next week, once it has received new forecasts from the Treasury.

The forecasts are likely to confirm the economy is slowing more rapidly than anticipated, which means the Government's forecast tax income will also be lower than expected.

Finance Minister Michael Cullen says the Cabinet has agreed on how to cut taxes, but will not decide until next week how big the cuts should be or when they will come into effect.

Dr Cullen says the Government is having to take into account changing economic fortunes. He says those families already receiving tax relief through the Working for Families package will also benefit from across-the-board tax cuts.

National's leader John Key says the party will not release its tax policy until well after the Budget, but he expects to propose a more substantive package.