Responding to today’s announcement of a new tax on the electricity sector, Taxpayers’ Union Spokesman James Ross said:

“Introducing a new tax during a cost-of-living crisis would be a huge political mistake. Luxon promised ‘no new taxes’, and he will destroy his credibility if he u-turns now.”

“You don’t make electricity bills cheaper by taxing them. Dancing on the head of a pin over what is a tax and what is a levy is a Labour Party talking point. Luxon should spare us the spin and abandon this folly.”

“Assuming the Government’s ballpark estimates are correct, based on last year’s total electricity generation Kiwi households are about to wake up to an extra cost of between $40 and $90 each."

“Make no mistake, a tax on power will hit jobs and make households worse off. If Luxon wants to spend money on LNG plants, he needs to find the money through savings elsewhere.”

NOTE:

Based on total wholesale electricity generation in 2024 of 43,879 GWh and 2,057,500 households as of 31 December 2026, based on the Government's estimated $2-4 levy per MWh, this gives an estimated cost per household of between $43 and $85 per year.

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