Most of the Companies in New Zealand expect that tax changes, which have been announced recently by the Government will hit their bottom lines.

The Government announced these tax changes on May 20 and this also includes a change in the effective rate of corporate tax to 28% from the earlier 30%. These changes will be applicable from April 1 next year.

One of the Companies listed on the New Zealand stock exchange, Freightways stressed that the latest tax changes will lead to a onetime payment of $6 million. It stressed that additional adjustments may be required and it was still not clear how all the expenses will be calculated.

The share prices of Freightways declined by 3 cents to reach $2.82 in the morning trade.

Many tax experts and Companies have already criticized these tax changes. These changes are expected to have an impact on most of the listed Companies. These changes are expected to cost businesses almost $1.6 billion in the coming four years.

Companies will have to account for these expenses in their annual budgets and will also be questioned by their investors over these. This is also expected to have an impact on their annual results.

Some of the tax experts appointed by the Government have defended the imposition of these new taxes.