Ahead of New Zealand’s general elections, planned for October, intense competition is expected. Amid concerns about increasing inflation, high taxes and high-interest rates, the National Party and Labor Party are expected to clash but who will be the winner remains to be seen. On Wednesday this week, the National Party uncovered details regarding an extensive reform on taxes and confirmed its plans to implement it, in case they win the upcoming elections, a report released by the Otago Daily Times reveals.
One major change included within the National’s reform is the taxation of offshore online gambling. Currently, TAB NZ, as well as the New Zealand Lottery Commissions are the only regulated gambling options available for customers in New Zealand. Despite that, under the existing regulations gambling via offshore online operators is not illegal. However, given that online offshore gambling websites are not regulated this means that they do not pay taxes. By implementing changes to taxation, the National Party seeks to close this gap and benefit from millions in tax revenue from online gambling activities.
Additionally, the party hinted at plans to implement a 15% tax applicable to foreign buyers of houses. Still, under the proposed change, that tax would apply for properties that are valued at more than AU$2 million ($1.3 million).
A Balanced and Prudent Tax Plan
Upon announcing the new tax policy, Christopher Luxon, National’s leader, said: “This plan confirms that a National government can do what we’ve said all along that we will do, which is to put money in the back pockets of New Zealanders as part of a prudent, fully funded and balanced tax plan.”
The new tax plan, called Back Pocket Boost undoubtedly represents an important change to the taxation model in the country. Nicola Willis, finance spokesperson, revealed that the tax plan seeks to reduce pressure on inflation while at the same time removing the need for borrowing. “It has been designed to be self-funding so that National can guarantee tax relief for working people, even if Labor leaves the government books in a mess, as is predicted,” she explained.
According to Willis, if the National Party wins the upcoming election, it will focus on boosting the funding for education every year. Additionally, she said the party commits to boosting funding for frontline health. Willis criticized the Labor government for the “sheer volume of government spending.” Besides the spending, she showed concern about the present situation where people are forced to pay higher taxes and costs associated with food, rent and petrol, among other increasing expenses.