Government condemned Labour’s Capital gain tax policy by calling it not potential enough to raise funds. Capital gain tax on investments and properties is the key proposal of the Labour party which claims to rise over billions of dollars in the coming years. The proposed tax system will lay a tax of 15% on the profit made from selling an investment property.

The government condemned the policy by putting the fact that the house prices are either flat or falling. Because the tax levied is on the profit made on investment and not on the amount sold, the tax policy will bring in little or no tax at all.

"It would probably take 15 years before it raised $700 million”, Finance Minister Bill English said in Parliament

Although Labour leader Phil Goff is lip-sealed on the issue, the government is making remarks on its own speculations.

In an another statement, Prime Minister John Key, stated that to raise an amount of $4.5 billion Labour would have to imply a tax of 30% on all properties including rental properties, farms and other commercial properties.

Labour’s previous statements of making first $5000 income tax free and removal of GST from fresh vegetables and fruits gained popularity too.