National's election promise to scrap the so-called "app tax" has itself been scrapped as the new government looks for ways to pay for its coalition policy promises.
The party had promised to reverse the change that would've seen GST imposed on accommodation and transportation providers on platforms like Uber and Airbnb.
Currently, Airbnb hosts and Uber drivers levy themselves for GST but only if they make more than $60,000 in annual revenue.
Earlier this year, National campaigned heavily against the change through commercials, advertising, memes, and petitions.
But now, the change will come into force next April as originally planned.
Finance Minister Nicola Willis was questioned about the reversal at her Government's second post-Cabinet media conference this afternoon.
She said adjustments had to be made as National was now part of a coalition government with other parties.
"Obviously, we campaigned on a tax package that had other sources of revenue, and we now have a coalition government. We need to make adjustments."
Airbnb's New Zealand public policy head Michael Crosby said the company was "really disappointed" at the reversal of the "rock solid pre-election commitment".
"This is going to make the tax system more complicated and it runs the risk that Kiwis are going to be paying more."
Labour finance spokesperson Grant Robertson said the reversal was a "shambles".
"This is an absolute shambles, alongside putting in place tax cuts funded by more people smoking. We now have a backflip around this charge," he said.
"They're scrambling around looking for money in every corner. If I were a National voter who had voted for them based on their policy program, day by day, I'm seeing that fall apart."
The former finance minister stood by the tax and suggested it "levelled the playing field".
SHARE ME