Simon Watts is a Taxpayer Hero (For Now)

The Taxpayers’ Union is welcoming Revenue Minister Simon Watts’ announcement that the proposed Digital Services Tax Bill will be scrapped, but warns that adopting a global alternative could still leave taxpayers even worse off.

Taxpayers’ Union Spokesman James Ross said:

“The Digital Services Tax would inevitably have ended up taxing Kiwis by stealth, either through higher prices or lost services as tech firms pulled out of the market.”

“Other countries have tried and failed. With Trump-era tariffs looming large, now is certainly not the time to invite US retaliation by taking targeted petty swings at American companies.”

“Watts needs to go further. Pursuing the so-called ‘global solution’ doesn’t just lock us into higher taxes, it’s clearly anti-democratic. We should categorically rule out ever handing the power to set our tax rates to overseas bureaucrats far beyond the reach of New Zealand voters.”

“One tax down (for now), but plenty more to go. This Government is still taking more in tax than Grant Robertson ever did, and Budget 2025 is their chance to deliver real tax relief for Kiwis across the board.”