September 17th, 2024
Labour government has come under fire from ACT Leader David Seymour over their supercharged ute tax, which he claims unfairly targets tradies and farmers. Seymour argues that this policy will not only make "cheap, reliable cars more expensive" for those groups during a cost of living crisis but also create additional burdens for the freight industry.
"Despite desperately spinning that he’s a new broom in touch with everyday Kiwis, Chris Hipkins is no different from Jacinda Ardern. In reality, Labour doesn’t give a stuff about the tradies, farmers and working New Zealanders who are doing it tough," Seymour said, according to a media release.
Seymour contends that the new ute and freight tax policy does not take into account the existing taxes and subsidies vehicles are subjected to through the Emissions Trading Scheme (ETS).
He cites petrol taxes, ETS charges, GST, and a regional fuel tax in Auckland as examples of the current financial obligations for motorists, which he believes lead to a double tax for petrol users and a double subsidy for EV owners.
“Labour’s ute/freight tax ignores the fact that vehicles are already taxed and subsidised through the Emissions Trading Scheme. Motorists pay petrol taxes, ETS charges, GST, and a regional fuel tax in Auckland. The combination of the ute tax plus ETS charges means people who use petrol get hit with a double tax and EV owners get a double subsidy," Seymour explained.
Furthermore, Seymour highlights that the switch to an EV does not guarantee a reduction in total emissions. He notes that any unused carbon credits under the ETS free up credits for others, meaning that the total number of credits remains capped. In his view, this renders the policy "totally incoherent."
This is what ACT warned about when we were the only party to vote against the Zero Carbon Act: the constant ad hoc bans, regulations, taxes, and subsidies that would flow from it. The ETS is the most cost-effective tool we have for reducing emissions – we should use it properly," Seymour, ACT Leader.
The ACT Leader asserts that the policy's primary effect is a wealth transfer from one group of New Zealanders to another. He claims that working-class Kiwis are being taxed on their vehicle purchases to provide discounts for wealthier individuals buying Teslas.
“The biggest impact of this policy has been a transfer of wealth from one group of New Zealanders to another, with tradies and working-class Kiwis being taxed on their vehicle purchases to ensure a discount for wealthier people buying Teslas," he said.
Seymour believes that Labour's policy is divisive and wrong. "If you drive an EV you’re a good person in their eyes, if you have the temerity to drive a petrol vehicle, regardless of whether you have a choice, then you deserve to be punished," he added.
ACT would repeal the ute tax and the Zero Carbon Act, which Seymour argues drives such poor policy.