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 the Coalition’s policy commitments.
The party had promised to reverse changes that would have imposed GST on accommodation and transport on platforms such as Uber and Airbnb.
Currently, Airbnb hosts and Uber drivers collect GST, but only if their annual revenue exceeds $60,000.
Earlier this year, National ran a major campaign against the changes through commercials, ads, memes and petitions.
However, the changes are now scheduled to take effect in April next year as originally planned.
Finance Minister Nicola Willis was asked about the reversal at the second government press conference after the cabinet meeting this afternoon.
He said adjustments were needed because the National Party was now part of a coalition government with other parties.
“Obviously we campaigned on a tax policy with other sources of funding and now we have a coalition government. Adjustments need to be made.”
Michael Crosby, Airbnb’s head of public policy in New Zealand, said he was “truly disappointed” that Airbnb had reversed its “robust pre-election promises”.
āThis risks making the tax system more complex and New Zealanders paying more.ā
Labor finance spokesman Grant Robertson said the reversal was a “huge mess”.
“This, along with the introduction of tax cuts to fund more smokers, is an utter mess. We are now turning the tables on this accusation,” he said.
“They’re running around chasing money at every corner. If I were a citizen voter and I was voting for them based on their policy program, I see it disintegrating day by day. ing.”
The former finance minister supported the tax, suggesting it would “level the playing field”.