Former National party leader Don Brash has hit out at the Tax Working Group for what he says is a race-based discount for iwi businesses built into the proposed capital gains tax released yesterday.

Source: 1 NEWS

He argues that it shows the Tax Working Group believes that Māori can’t achieve without a tax break.

The Tax Working Group’s final report, released yesterday, recommended that iwi-owned businesses would pay a discounted rate of 17.5 per cent, compared to 33 per cent for other businesses.

"The TWG has still not dealt with the anomaly that businesses run by charities are exempt from tax - also benefiting many iwi corporations as well as church-related businesses," Mr Brash said.