Labour Party leader Chris Hipkins says no government he leads will have a wealth or capital gains tax (CGT).
He has also revealed the Government considered the taxes as part of the 2023 Budget, but Hipkins ruled it out.
In a statement released this morning, he said with many households struggling, now was "simply not the time for a big shake-up of our tax system".
“I’m confirming today that under a government I lead there will be no wealth or capital gains tax after the election. End of story," he said.
“New Zealanders I talk to want certainty and continuity right now, and that’s what I’m delivering with this policy.
“When I became Prime Minister I said the government I lead will focus on the basics. Experimenting with a wealth tax doesn’t fit that approach which is why I’m ruling it out. My position on CGT is a continuation of the position the Government has held since 2018."
Former prime minister Jacinda Ardern had also ruled out a wealth tax and CGT.
Hipkins said while work had been underway on a potential wealth tax and CGT as part of the "tax switch" in Budget 2023, he "ultimately made the call not to proceed with it".
"We simply didn’t have a mandate to implement those tax changes."
He said the Labour Government had instead "moved to address inequity in our tax system" by increasing the top trust tax rate to match the 39% top income tax rate.
"This will help prevent trusts being used as a tax shelter and ensures the ultra-wealthy pay their fair share. It also aligns with the increase to the top tax rate we implemented at the start of the term.
“In uncertain economic times, my view is it’s best to keep things simple. As such the Budget focused on targeted support for families that didn’t drive up inflation. Our election campaign policies will be similar."
He said National's tax cuts were "unaffordable and inflationary".
"Just as we are getting on top of price increases they would borrow to deliver an inflationary sugar hit.
“National’s uncosted and unfair tax changes would deliver the biggest cuts to millionaires and CEOs while offering while offering as little as $2 a week to some low and middle income households.
“Some people might call it boring, but the times call for restraint and simple and smart policies which grow our economy, help drive inflation down and provide targeted help to those families who need it the most.
“Our work on securing new free trade agreements is helping our exporters and will grow GDP, while free prescriptions and twenty hours free ECE will help families cover the bills. Simple and effective policies that are proven to work and keep inflation in check."
Hipkins said details of Labour's tax policy would be released "soon".
"New Zealanders can be assured the government I lead is listening and will be focused on making life a little easier without implementing big uncertain changes."
In response, National leader Christopher Luxon tweeted it was now confirmed Labour had been "plotting" a wealth and CGT "for months".
"Now, Chris Hipkins is desperately trying to rule them both out - it’s cynical politics.
"You can’t tax your way to a strong economy. National will reduce the tax you pay - it’s part of our plan to fix the economy, lift incomes and solve the cost of living crisis."
National finance spokeswoman Nicola Willis also tweeted, saying the announcement confirmed "splits and divisions" in Labour's Cabinet.
"Clearly Robertson and Parker want to go hard with new taxes. Hipkins let their big taxing fantasies go all the way to Cabinet before ruling them out.
"It’s weak and confused."
The announcement follows a Talbot Mills Poll which gave Labour its lowest result since 2019, on 31% for the party vote - five points below the National Party on 36%.
Responding to the poll in Europe overnight, Hipkins acknowledged it had been a "messy" few months for the Government.
"I've been around in politics long enough to know that where a party or government looks like it's not focused on the issues that New Zealanders care about, the voters will send them a pretty clear message about that. I've certainly received that message.
"I know that the last few months have been a bit messy for the Government. We really need to return our laser-like focus onto the issues that New Zealanders care about."
It follows a cascading series of ministerial mishaps and scandals, including sackings and resignations, involving ministers Stuart Nash, Michael Wood, Kiri Allan and Jan Tinetti.
Hipkins said the poll was "a very sharp reminder to everyone in government" to stay focused on issues New Zealanders cared about.
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