National has abandoned plans for an accommodation levy and a bank tax, with party leader Christopher Luxon ruling out both under a new "no new taxes" election pledge.
Speaking at the party's official Botany electorate campaign launch, Luxon said the promise would be upheld in any coalition agreement he signs. The announcement marks a shift from National's previous commitment to "no new taxes on working people" and comes after the party had floated both measures in recent weeks.
"This is about no new taxes, and I can't be clearer," Luxon said, according to 1News. "Tax is a defining theme for this election, and the choice for Kiwis is clear. It's either a National government promising no new taxes, or a Labour and its prospective coalition proposing at least nine new taxes."
The accommodation levy would have charged hotel and Airbnb stays, with revenue expected to help fund events and tourism infrastructure. The so-called bed tax had been heavily promoted by Auckland Mayor Wayne Brown and in Queenstown, and Luxon had previously committed to exploring the idea as Prime Minister.
But he said the party had determined there was no other way to implement the levy without hurting Kiwi families. "What we've determined is there was no other way that it wouldn't flow on and actually hit a Kiwi family or a couple going out to a for a weekend away in Queenstown or in Auckland," Luxon said, as reported by 1News.
Finance spokeswoman Nicola Willis echoed that sentiment, saying the party had been unable to find a way to raise taxes on banks without increasing costs to Kiwis. Willis had said in May she was "actively considering the taxation of banks", but the proposal was now scrapped.
The decision has disappointed mayors in tourism hotspots who had pushed for a nationwide accommodation levy to help fund public infrastructure in key tourist destinations. The levy was backed by mayors from Auckland, Rotorua, Ruapehu, Wellington, Marlborough, Christchurch, Timaru and Queenstown, among others.
Auckland Mayor Wayne Brown called the move "deeply disappointing" and said it "raises serious questions about the Government's commitment to the regional deal" it signed, according to 1News. Brown argued that a bed-night levy is a user charge, not a general tax, and would mean no additional rates or taxes on Aucklanders. He said he would raise the issue at a quarterly review on September 9 with deputy mayor Desley Simpson and planning committee chair Richard Hills.
Labour has also criticised the announcement, with campaign chair Kieran McAnulty saying National needed to tell voters what it will do and asking what cuts would be made.
Willis defended the party's position, saying Labour "spent up large", racked up $120 billion more debt, and kept taxes higher with nothing to show for it. She said National could invest in frontline public services without introducing new taxes.
Luxon also said it was "highly unlikely" National would enforce next year's legislated fuel excise tax increase. This follows a similar retreat in June, when Energy Minister Simeon Brown ruled out funding the Government's planned liquefied natural gas import facility with a levy on power bills, a proposal Labour had branded a "gas tax".
Willis said congestion charging had already been legislated and would only apply to road users.
The announcement comes as a new RNZ-Reid Research poll positions Opportunity as the kingmaker following November's election, and records a drop in personal popularity for both Luxon and Labour leader Chris Hipkins.
Luxon was scheduled to appear on Newstalk ZB's Mike Hosking Breakfast at 7.37am.