Election 2026: National abandons plans for bed tax, bank tax amid ‘no new taxes’ pledge
New Zealand's National Party leader Christopher Luxon has abandoned plans for new taxes, including a bed tax and bank tax, to uphold a 'no new taxes' election pledge. The move comes as the party critiques the fiscal strategy of the incumbent Labour government.
Why it matters
This policy shift reflects the intense political competition and economic debate surrounding taxation and government spending in New Zealand's upcoming election.
National leader Christopher Luxon says his promise of “no new taxes” will be upheld in any coalition agreement he signs as he defends scrapping plans for taxes aimed at supporting tourism and ensuring banks are taxed fairly.
It comes as Luxon and finance spokeswoman Nicola Willis repeat their claim that Labour is hiding more revenue-gathering policies as leader Chris Hipkins unveils his fiscal strategy, which features greater levels of government spending than National.
On Sunday, Luxon and Willis confirmed National would not campaign on any new taxes this election, a U-turn on the party’s position just two weeks ago.
While outlining its fiscal rules on August 9, the pair insisted no new taxes would be introduced for “working people”.
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