National may repeal ‘ute’ tax

A National Government – if elected next year- may repeal nearly all new taxes introduced under the Labour Government, says National leader Christopher Luxon.

In a “state of the nation” address on March 6, Luxon focused on the rising cost of living, promised to raise the income tax thresholds, and review “Labour’s tax grab” – including the Auckland Regional Fuel Tax and the Clean Car package which features a fee for high-emitting newly imported vehicles – sometimes described as a “ute” tax.

Luxon also suspects Aucklanders living near the proposed new light rail route might also be hit with a tax for that.

“Labour’s approach is to tax, tax, tax,” says Luxon, adding people should be encouraged to keep “their hard-earned money” while “we need to back small businesses up and down the country”.

He says the past two years have been overshadowed by the COVID-19 pandemic but adds that shouldn’t mean losing focus on trying to rebuild society.

“We know there will be a stark choice at the election next year.”

Luxon is reported as saying he supports EVs and while Air New Zealand chief executive helped switch the airline’s vehicle fleet to EVs.

National criticised the Clean Car package last year, running an advertisement which drew several complaints.

Meanwhile, new power prices are set to take effect from April 1, with Consumer warning that at least 40% of Kiwis could see an increase.