Special tax change for fossil fuel companies was proposed ahead of Budget 2025, ministers went for $200m co-investment option

A proposed tax deduction change for fossil fuel companies to boost gas production in New Zealand was considered for Budget 2025 but ultimately not pursued. While the Ministry of Business, Innovation and Employment believed it would incentivize increased drilling investment, ministers opted for a $200 million contingency fund for Crown co-investment in new gas fields instead.

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Proposed Tax Change for Gas Companies

The government thought about giving special help to gas companies to make more gas, but in the end, they decided to use money from a different plan instead.

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