Tax cuts - albeit scaled down - would still be introduced in April next year by a National-led government, National Party leader John Key said yesterday.
He will reveal the party's financial policy, including tax cuts, today at noon, as global financial markets continue their major meltdown.
"I am confirming our commitment to get behind Kiwi workers with a programme of personal tax reduction beginning in April next year.
"In light of recent events, that commitment is more important than it was previously."
National has made some changes to the tax package following the release on Monday of the gloomy Treasury forecasts.
The 14-year run of operating surpluses is expected to end and deficits are forecast from next year until 2018.
However, Mr Key said the thrust of the policy had not changed.
National was being realistic about what was fair and affordable in the light of the mess Labour would be leaving behind.
Following the Government's tax cuts of last Wednesday, National would make further reductions on April 1, next year, April 1, 2010 and April 1, 2011.
The largest chunk would be provided next year.
"For someone on the average wage, the actual amount of the tax cuts will be similar to that which we have previously signalled and I will detail those numbers tomorrow."
The tax package would require no borrowing over and above the requirements laid out in the Pre-Election Economic and Financial Update, he said.
As Mr Key contemplates how to pay for the tax cuts, world markets took a beating yesterday but with some signs that buyers were back in the market.
The Reserve Bank of Australia stepped in with a sharp 1% official cash rate cut to take it to 6%, almost ensuring the Reserve Bank of New Zealand follows suit on October 23.
ANZ-National Bank chief economist Cameron Bagrie believed there was a good chance the New Zealand central bank could lower rates by 0.5% today, down to 7%.
The NZX-50 recovered through the day to finish only 44 points down at 3004.
