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What’s driving this Government’s tax policy?

18 July 2019

What’s driving this Government’s tax policy?

After saying she wouldn’t give tax cuts to people who didn’t need them, Prime Minister Jacinda Ardern’s Government has done a 180-degree turn on her pledge with its latest tax on cars, National’s Finance spokesperson Paul Goldsmith says.

“The Government’s tax policy is making less and less sense by the day.

“The first thing it did was cancel National’s tax cuts because the Prime Minister said they would benefit well-off New Zealanders too much.

“So why is her Government now taxing Kiwis who can’t afford to buy a $65,000 BMW i3 or a $65,000 Volkswagen e-Golf, just so wealthier people can drive them around town?

“It’s not the first head-scratcher we’ve seen from this Government on tax. It also gave wealthier New Zealanders a helping hand by paying their university fees.

“At the same time, it has hit struggling New Zealanders with three fuel tax increases on top of a regional fuel tax in Auckland, a tax on most things they buy from overseas websites (Amazon Tax), a tax on their cellphones (GST on mobile roaming) and it has increased Worksafe levies.

“Kiwi households were already, on average, $1750 a year worse off because of taxes being piled on by the Labour-led Government. Now its car tax will make many of New Zealand’s most popular, and safest, cars up to $3000 more expensive.

“Labour can’t be trusted when it comes to tax. National will index tax thresholds to the cost of living and won’t introduce any new taxes in our first term.

“National believes New Zealanders should keep more of what they earn.”

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