Tax Increase Passed
21:31PM Thu Dec 23 1999 NZDT

The government's controversial tax increase legislation was passed into law on Thursday night after a day of often bitter debate in the house.

The bill increases the tax rate on incomes over $60,000 a year, from 33 to 39 cents.

It also pushes up the rate of fringe benefit tax - from 49 per cent to 64 per cent.

ACT, National and New Zealand First vigorously opposed the bill - however the Greens came to the rescue of the minority government - using their seven votes to support the tax hike.

The final vote was 64 in favour - 52 against.