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Tariff Act Repeal Bill Pulled From Ballot

Tariff Act Repeal Bill Pulled From Ballot

ACT New Zealand Economic Spokesman Sir Roger Douglas was today pleased that his Tariff Act Repeal Bill was drawn from the Ballot, which, if successful would see the removal of all remaining tariffs on imported goods.

“A tariff is a tax imposed on all imported goods and hurts all consumers. It forces us to pay higher prices for goods than we otherwise would, leaving us with less money – if any - to spend elsewhere," Sir Roger said.

"In 2008-09 alone, tariffs cost New Zealand consumers over $52 million more than they would have paid for consumer goods if there were no tariffs in place. Why is the Government taxing people for buying imported bed linen, pots and pans, cutlery, shoes, and iPods? In the current economic climate, that money would have been much better left in consumers’ hands, rather than lining the Government’s pockets.

“Worse still, tariffs hinder our productivity and reduce real wages. Our economy is most productive when we use our resources to produce and sell things we make well, using the proceeds to buy products that would otherwise be very costly for us to make.

“Tariffs artificially protect industries that would otherwise be unable to compete, encouraging continued investment in inefficient industries at the expense of investment in industries in which we are efficient. By removing tariffs investors will no longer have an incentive to invest in industry that requires Government protection to survive.
“This Bill will be another test for a National Party which is increasingly adopting economically unorthodox positions. They have long been advocates for free trade, and so it is time for them to step up and affirm their commitment to open markets,” Sir Roger said.


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