The cost of doing business in New Zealand could take a hit if Victoria University’s Tax Working Group suggestions go ahead, according to some property experts.

The Property Council of New Zealand commissioned financial advisers KPMG and tNZIER to produce reports about the impact of the proposed changes.

If depreciation were abolished and land taxes applied, it would have the same effect as if the productive sector’s taxes were increased, making it more expensive to do business in New Zealand, the reports found.

Recommendations in the Tax Working Group’s recently released report could – and should – have been much bolder, according to the chief executive of the New Zealand Institute for Economic Research.

“Anyone who seriously thinks that the group’s recommendations are radical needs a reality check,” Jean-Pierre de Raad said today in NZIER’s Insight.

Bolder tax reform was needed to gatch up with our cousins across the ditch, he said.