'Water Tax' Shouldn't Pick And Choose
'Water Tax' Shouldn't Pick And Choose
9 AUGUST 2017 -
"Picking and choosing who pays what ‘water tax’ and
changing the tax rate based on its use, is economic
silliness,” says Jordan Williams, Executive Director of
the Taxpayers’ Union
“In principle, a case
can be mounted for charging users of water. However,
Labour’s proposal seems more focused at the users, than
the actual use.”
“If Labour is genuine in
charging a ‘fair’ amount for water, why hasn’t it
backed tradable permits for water? That’s a far more
efficient, fair, and environmentally beneficial system than
royalties payable by some users.”
“Jacinda Ardern
comparison to royalties on oil and gas is a bit silly.
Labour’s water royalty policy is akin to saying, they’ll
charge oil drillers if the oil is used to make asphalt, but
not if it’s used for plastics. Our point is that a water
royalty should treat industries the same – rather than
pick and choose.”
“The most disappointing thing about today’s announcement is that it’s really just another tax on business and entrepreneurship. With the Treasury swimming in money, Labour should be explaining how it will lower the tax burden to get Kiwi businesses ahead – not saddling industry with even higher tax bills.”
ENDS