Taxes, taxes and more taxes choke New Zealanders

Taxes, taxes and more taxes choke New Zealanders

Kanwaljit Singh Bakshi 

Wellington, July 1, 2019

The number of taxes this Government is heaping onto Kiwis, flies in the face of its claim to be the most kind and caring yet.

When you add all the new taxes and take into consideration the cancelled tax relief, Kiwi families are looking at $7000 out of their pockets over four years.

That does nothing to increase the wellbeing of an average family.

New Zealand households will be $1750 a year worse off on average, just because of the taxes being piled.

The Government has increased fuel taxes three times since it came into power.

It has added on a Regional Fuel Tax in Auckland, introduced ring fencing of losses on rental properties, Amazon Tax, GST on overseas roaming, extended the bright-line test and increased WorkSafe levies.

Proposed cuts scrapped 

All this, and the Government cancelled the previous National Government’s planned tax cuts. Our tax cuts would have removed some of the burden Kiwis are now facing, and meant they had a bit more in their wallets at the end of the week.

The economy is continuing to weaken because of this Government’s poor policy decisions. But it’s a strong economy that pays for wellbeing. A weaker economy means that the Government has less for health, education and infrastructure.

Electricity prices up

Electricity prices will rise as a result of the Government’s Renewable Electricity Policy, Kiwis could have to pay an extra $300 a year to heat their home. This will hit low income households and vulnerable families in poor quality housing, the ones who are least able to afford this increase. This is just as we start to hit the worst of winter.

Despite the evidence showing this is exactly what Kiwi families are facing this winter, the Government continues to forge ahead with this Policy.

Not only is the price of electricity up, but so is the cost of living, rents are up an average of $50 a week, and petrol is on the rise too.

It is very clear that New Zealanders cannot afford this Government.

Unwise spending

The Government is taking more and money, but isn’t spending it wisely. Taxpayers are forking out more than $2 billion for fees-free, which has resulted in fewer students, $3 billion for Shane Jones’ slush fund, and $2 billion on KiwiBuild.

National has announced we will index tax thresholds to the cost of living. This means income taxes would be adjusted every three years in line with the cost of living.  

The Government clearly doesn’t have New Zealanders’ wellbeing at heart given the number of taxes it is piling on. New Zealanders work hard to get ahead, and they deserve to keep more of what they earn.

Kanwaljit Singh Bakshi has been a Member of Parliament on National List since November 2008. He is currently his Party’s Spokesperson for Internal Affairs and Associate Spokesperson for Justice, and Member of the Administration Select Committee.

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