Paul Goldsmith - Economic and Regional Development

31 October 2018

The Government took in $1 billion more in taxes than in the same quarter last year but is intent on taking even more from New Zealanders’ back pockets over the next two years, National’s Economic and Regional Development spokesperson Paul Goldsmith says.

“The Crown accounts for the first three months of the fiscal year show tax revenue was $19 billion up from $18 billion the same time last year. The Crown accounts are still relatively strong as the Government benefits from National’s prudent fiscal management.

“But the amount of taxes pouring into the Government’s coffers suggest it is making too big a raid on the wallets of ordinary New Zealanders while driving up the cost of living. It should be considering tax relief rather than additional taxes and levies.

“Grant Robertson confirmed yesterday the Government expected to take an extra $9.3 billion in taxes over the next two years. That’s an 11 per cent increase in a period when wages are forecast to rise 6 percent.

“Given its tax take will be swelled by billions of dollars it is extraordinary that the Government can’t commit to a revenue neutral tax package once the Tax Working Group has reported back.

“New Zealanders trying to manage their household budget as costs rise would have been better off under the last National Government, whose tax cuts amounted to $1,060 for the average worker.

“This Government thinks it knows better how to spend that money although its track record includes wasteful spending policies like fees-free tertiary education.

“National believes New Zealanders should be able to keep more of what they earn and Government spending should be subject to rigorous scrutiny. National supports policies that drive economic growth and benefit all our communities.

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