Christopher Luxon has slammed Chris Hipkins announcement ruling out wealth and capital gains taxes should he lead a new government, calling it a "pretty desperate move".
Labour's leader today ended speculation on the issue by stating no government he leads will implement a wealth or capital gains tax (CGT).
Speaking to media in Auckland this afternoon, National's leader didn't hold back on what he thought of the announcement.
"Obviously the big news today is we have seen a pretty desperate political move from Labour which again suggests you can't trust them on anything let alone tax.
"What we've seen is a Government that has been working away dreaming up new CGT, wealth taxes over the last few months and then again today we have Chris Hipkins coming in and ruling it out."
Luxon said he has been asking Hipkins to rule out the taxes in Parliament for weeks with him refusing to do so.
"We now have a situation with the coalition of chaos where we have Labour now saying they are ruling it out for real this time, but who knows, and we've got the Green Party saying it's definitely part of a coalition agreement."
Luxon went on to say he believes the move by Hipkins is him being "politically expedient" and trying to get votes any way he can.
"He will say and do anything in order to get elected," Luxon said.
"I think it's very difficult to work out what he (Hipkins) stands for."
National Party finance spokeswoman Nicola Willis also gave her opinion on Hipkins' announcement.
This afternoon on her Instagram story, Willis said Labour had been "busy designing a new capital gains tax, a wealth tax and windfall taxes".
"Labour loves tax like a shark loves blood.
"Hipkins wants you to believe that if elected the coalition of chaos won't introduce them. Pull the other one."
Labour's tax pledge
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".
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