National abandons plans for bed tax, bank tax amid ‘no new taxes' pledge
National is abandoning any plans to campaign on an accommodation levy or a bank tax, committing to “no new taxes” this election.
It comes just two weeks after National leader Christopher Luxon spoke publicly about the prospect of changing bank tax settings and imposing an accommodation levy, also known as a bed tax, as part of National’s election pitch, which was previously characterised as “no new taxes on working people”.
It also coincides with National ramping up its attacks on Labour as it highlights the cost of Labour’s policies and looks to seed doubt in voters’ minds that Chris Hipkins will have to abandon his commitment to only introduce a capital gains tax.
While Luxon and finance spokesperson Nicola Willis have guaranteed the two speculated taxes wouldn’t be progressed, their statement doesn’t reference whether the party would increase fuel excise tax.
Luxon is expected to front a media stand-up at 3pm in Auckland. A livestream will be played at the top of this article.
On August 9, Luxon and Willis outlined the fiscal rules National would campaign on. During the press conference, Willis said the party would not introduce new taxes “on working people”.
Willis declined to elaborate. Speaking to Newstalk ZB the next morning, Luxon acknowledged that the fuel excise had not increased since 2020 but said it was “highly unlikely” the Government would enforce next year’s legislated increase.
He also pointed to discussions regarding an accommodation levy or bed tax, something strongly supported by Auckland Mayor Wayne Brown to assist with tourism spending. Luxon noted that Willis had spoken around this year’s Budget about assessing whether bank tax settings were adequate.
Luxon repeated at the time the party’s position of not introducing new taxes “for working people”.
However, in a statement Luxon and Willis committed to no new taxes if re-elected.
“That includes no accommodation levy or bank tax,” Willis said.
“We determined there is no way to do an accommodation levy without increasing costs on Kiwis booking a weekend away, so we’ll look at how existing mechanisms could be used to support councils with the costs of tourism.”
The statement did not address fuel excise.
Luxon said tax was a “defining theme of this election”, reiterating his party’s claims a Labour-led coalition was proposing as many as nine new taxes.
Hipkins has repeatedly insisted a coalition led by Labour would not feature taxes proposed by future partners, such as the Green Party, Te Pāti Māori or Opportunity. He said only Labour’s capital gains tax, used to fund three free GP visits, would be introduced.
Labour’s argument was undermined last week when the party ruled out a streaming tax, only to find it had a Member’s Bill in the ballot that, if passed, would have introduced a streaming tax.
The previous week, senior MP Willie Jackson appeared to suggest Labour could be open to a lower land tax, as proposed by Opportunity, which he later clarified and apologised for.
Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.
Take your Radio, Podcasts and Music with you
Get the iHeart App
Get more of the radio, music and podcasts you love with the FREE iHeart app. Scan the QR code to download now.
Download from the app stores
Stream unlimited music, thousands of radio stations and podcasts all in one app. iHeart is easy to use and all FREE
