Taxpayers’ Union welcomes ‘no new taxes’ budget pledge but devil will be in the detail

Taxpayers’ Union welcomes ‘no new taxes’ budget pledge but devil will be in the detail

Commenting on the Prime Minister’s pre-budget speech, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“While the cyclone recovery will be costly, hiking taxes on hardworking New Zealanders during a cost of living crisis would have been the wrong approach. We also welcome the ruling out of a capital gains tax or wealth tax for this year's budget, which would have stifled investment and driven high-net worth individuals abroad who make a large contribution to the funding of our public services.

“But the Prime Minister’s ‘no new taxes’ pledge must not ring hollow. After all the talk yesterday of the wealthy not paying their ‘fair share’ in tax, it is disappointing that the Government has not yet dropped its plans for a regressive fuel tax hike in June that will disproportionately hit poor and rural communities.

“Moreover, with inflation continuing to run high, the problem of bracket creep means that many Kiwis are paying an ever higher share of their income to the Government. This particularly hurts those on middle incomes.

“No new taxes might be a good election slogan, but for it to be true, the Government must refrain from hiking fuel taxes and address the inflation tax.”