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Government to blame for worsening cost of living

15 MAY 2018

With Stats NZ data showing housing costs, tobacco taxes, and petrol costs are driving up the cost of living for low income households, it’s clear the Government is worsening poverty, says the New Zealand Taxpayers’ Union.

Taxpayers’ Union Economist Joe Ascroft says “If the Government is interested in improving the wellbeing of Maori and beneficiary households, then the data shows they need to improve housing affordability and stop increasing tobacco and fuel excise taxes.”

“The solution to housing affordability isn't to inflate the rental market with handouts - the Government should actually get out of the housing market and eliminate the red tape driving up costs. Density restrictions and urban limits need to be removed to allow radical growth in housing supply.”

“The Government should also end increases to tobacco and fuel excise taxes. Unfortunately, we appear to be moving in the opposite direction, with national and regional fuel tax increases on the agenda. At this rate, families already struggling to make ends meet will be looking back at today’s living costs with envy.”

ENDS


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