Labour’s car tax will unfairly punish New Zealanders

The Government’s car tax will unfairly punish Kiwis who don’t have the option right now of switching to an electric vehicle, National’s Transport spokesperson Michael Woodhouse says.

National supports introducing financial incentives for people to purchase EVs but does not agree with financially punishing those who can’t, Mr Woodhouse says.

“Labour is introducing another tax by stealth – plain and simple. Hot on the heels of dressing up its capital gains tax as brightline test extension, it’s having a second bite at a car tax.

“This is yet another broken promise from Labour, which said it wouldn’t sting New Zealanders with any unannounced taxes. Where was this so-called ‘fee’ during the election campaign?

“Labour’s car tax policy will unfairly hurt farmers, tradespeople and low-income earners for whom low-emission vehicles will still be too expensive or unsuitable for their lifestyle.

“The people who benefit will be higher-income earners who now don’t have to pay as much for a Tesla. We don’t think it’s fair to make tradies pay more for a Hilux so wealthy executives can get a discount on their next electric car.

“National believes there are more positive ways we can encourage the uptake of electric vehicles. At the last election we supported moves to exempt EVs from fringe benefit tax, extend road user charge exemptions, allow EV users access to bus lanes and free parking, and provide more funding for development of low-emission technologies.”