Prime Minister Chris Hipkins has ruled out reintroducing the fuel excise duty discount because of "constrained" Government finances and road maintenance costs.
The 25 cents per litre discount was first introduced as a three-month measure in March 2022 and later extended multiple times until last month, when it finally ended.
It was also introduced alongside half-price public transport fares and later paired with the $350 cost of living payment last year. Hipkins was asked today whether the Government was considering any measures to take the edge off fuel prices.
"We're not proposing to extend or reintroduce the fuel tax reduction that we applied when this happened last time. We're not in a position to be able to do that," he said.
"We actually need to be spending that money on roads, road maintenance, and so on.
"The Government's finances are significantly more constrained than they were previously, and I think that's a reflection of the economic conditions that we're in at the moment."
The prime minister said he "recognised" this "will be an unwelcome increased cost for families", but that the Government was "very squarely focused" on cost of living.
"You'll see that reflected both in the decisions that we've taken, this year's Budget and also the commitments that we'll be putting before the electorate in this year's election campaign."
When queried on those commitments, Hipkins responded he was "still focused on governing the country through some difficult circumstances" and that the campaign "hasn't really started yet".
Prices have risen by only around 4.5% in the past four weeks, according to tracking app Gaspy, the NZ Herald reports, but more pain is soon expected as global prices spike.
Hipkins says Greens' wealth tax 'not magical', 'very risky'
Hipkins again shot down the idea of a wealth tax, which he has strenuously previously ruled out, and went further in suggesting it was "very, very risky".
"I'm absolutely sure we'll be able to work constructively with them in the future. I don't see wealth tax as being the silver bullet or the magical solution to all of the country's tax problems, and I've been clear about that.
The plan would be paid for by an overhaul of the tax system. (Source: 1News)
"In fact, if it was, then other countries might be doing it — no other countries are doing it.
"Because the reality is that there are so many pitfalls, and the whole concept of a wealth tax — it would be very, very risky."
On Sunday, Labour's likely coalition partner after the election, the Greens, announced it would push for free, universal dental care for all New Zealanders by shaking up the tax system.
The party's proposed tax changes include a new top rate of income tax of 45% on income over $180,000 and a 2.5% wealth tax on an individual's assets over $2 million.
However, anyone earning under $125,000 would pay less tax as a result, with a tax-free threshold of $10,000 — whilst there were also adjustments to other tax brackets.
'Next few weeks' on Labour tax policy - party leader
Labour's leader told Breakfast he was certain the party's tax policy would be released "within the next few weeks". National has not yet released its plan.
"It will certainly be within the next few weeks," he said.
The Opposition claims it's part of the Government's tax policy leading up to the election. (Source: 1News)
"We've got a number of things that we have to weigh up. One of the key things that we've been working through carefully is the affordability of our tax proposals.
"We're making sure that we've got that all carefully nailed down.
"I know the National Party hasn't released their tax policy yet, either, and they'll be doing the same exercise that we're doing."
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