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PM says fuel excise tax rise, accommodation levy could be on the cards

G
Gallery reporters
PM says fuel excise tax rise, accommodation levy could be on the cards
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New Zealand Prime Minister Christopher Luxon has suggested that fuel excise tax increases and new accommodation levies may be necessary if his party is re-elected. While maintaining a pledge to avoid new taxes on working people, he clarified that existing levies like fuel taxes are necessary to fund infrastructure.

Why it matters

This highlights the tension between campaign promises of tax relief and the fiscal reality of maintaining national infrastructure during economic instability.

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Prime Minister Christopher Luxon says raising the fuel excise tax and imposing an accommodation levy could be on the cards if National is re-elected. On Sunday, the National party committed to three so-called Budget Responsibility Rules aimed at returning to surplus, cutting debt and keeping taxes low. The party promised to adhere to them if re-elected as a bulwark against economic shocks, with Finance Minister Nicola Willis confirming there would be "no new taxes on working people". Speaking to Morning Report, Luxon was asked what "on working people" meant. He said it meant National wouldn't introduce the proposed taxes from the opposition, such as a "capital gains tax, a wealth tax, a death tax, a gift tax, an income tax, or company tax increases, and a land tax." It was put to Luxon that most of those taxes weren't on "working people".

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