Fiscal matters will be among the most important issues to be addressed by the government over the next few years. An improving fiscal outlook will provide considerable scope to reduce taxes once net debt is reduced to a prudent level. Tax reductions present an opportunity to improve efficiency and to enhance growth, investment and employment, and to encourage individual responsibility and initiative. The New Zealand Business Roundtable’s views on the principles that should be taken into account in designing a taxation reduction programme are presented in this paper.