According to Auckland International Airport, decrease in the corporate tax rate may balance any impact from the removal of the capability to depreciate buildings.

It has been announced by the Government in May that it is eliminating the ability to depreciate buildings and also dropping the corporate tax rate to 28% from 30%.

Today, the Auckland Airport has said that it has taken the advice of externals on the impact of these moves, on the accounting worth of delayed taxation in its accounts.

After tax its net profit will be dropped by $80 million for the year ended June 30, because of the increase in deferred tax liability. But according to Auckland, its saving made through the lower tax rate will not have any influence on its essential cash flow and profitability.

The corporate tax rate was cut from 30% to 28% by the Government last month and it removed the ability to depreciate buildings. Initially, the Auckland Airport has forecast income of between $100 million and $105 million.

Earlier this month, Auckland Airport publicized the Qantas low-cost carrier, Jetstar, will start on daily flights from Singapore, next March. Today, the shares increased 0.5% to $1.91 in trading.