Hi Friend,
Two years
ago, the National Party campaigned against Labour's Jacinda
Ardern/Chris Hipkins' outrageous "Ute Tax".
Well, in
the most astonishing turn of events, we can confirm that National's
Climate Change and Revenue Minister, Simon Watts, has instructed
officials to develop new tax rules that will smash ute owners even
harder than Jacinda Ardern's original Ute
Tax!
As reported
by Radio NZ:
Under the change, farmers
with a mixed used farm ute costing $70,000 will be hit with an annual
[Fringe Benefit Tax] bill of $6370, at the proposed 26 percent rate
for petrol and diesel vehicles.
"Farmers are buying
vehicles at Fieldays, looking forward to a reduced cost thanks to
depreciation deductibility, but oblivious to the tax grenade coming
their way in 12 months," [Findex tax advisory partner Craig
Macalister] said.
"Worse still, any vehicle
over $80,000 - such as a $75,000 ute with $6000 in extras - will be
classified as 100 percent taxable."
Friend,
Labour's Ute Tax hit only when you bought a new ute. Simon Watts' Ute
Tax 2.0 will see the tax payable each and every year!
Currently,
if you use a ute mostly for work, you can keep a logbook and avoid
FBT, provided private use is genuinely minimal. That’s only
fair.
But Watts
wants to remove the logbook system and slap a flat tax on nearly every
ute in the country, regardless of how it’s actually used.
He's
getting IRD officials to say it's about 'simplification'. Yeah right!
It's nothing short of an on-farm tax grab.
Labour's Ute Tax
maxed out at a one-off $5,175. Simon Watts version is much
harsher.

Say you buy
a Ford Ranger "Raptor" (currently listed online for $86,990). Under
the current rules, assuming it's mostly a work vehicle and personal
use is incidental, no FBT is payable. Under Simon Watt's proposed tax
rules, $6,318 or even $8,213 will be payable in Fringe Benefit
Tax in the first year alone! (The exact amount will depend on
the driver's marginal/income tax rate).Â
It's not
principled – it's nothing short of a $100+ million tax grab from
farmers and tradies.
For utes
worth $80,000 or more, FBT will be deemed to apply at 100% even if there is no personal use
or benefit.Â
Watts going on? Has this National Party Climate Change
Minister gone rogue?
Friend,
this isn't some IRD brain fart or just officials getting ahead of
themselves. According
to documents uncovered by the Taxpayers' Union yesterday afternoon,
Minister Watts has been proactively asking IRD to do work on hiking
FBT on utes and work vehicles!
Do National Party MPs even know Watts going on?
Just last
week, at National Fieldays, Christopher Luxon and Nicola Willis were
literally bragging that they scrapped Labour's Ute Tax!
And here is
one of the National Party's social media posts from just two years
ago:

The National
Party are either being super sneaky or simply doesn't know what their
Climate Change/Revenue Minister has been up
to.
As far as
we can tell, nothing has gone to Cabinet – it's all being snuck
through buried within business-as-usual annual IRD tax
amendments.
We've rushed to
create an email tool for you to contact your local National MP and
demand they scrap Simon Watts' Ute Tax 2.0.
A $100 million tax grab targeting ute owners
🤑
According
to IRD estimates, based on the assumption that the policy change would
impact just 30% of the number of double cab utes (which our
own tax policy expert say is likely to be a gross underestimate), the
"fiscal impact" of the Simon Watts' proposed changes is a whopping $100 million.
That's $100
million in new ute taxes each and every year!
So much for
"Going for Growth". The very people holding up New Zealand's economy
right (farmers, tradies, etc) are the ones set to be targeted by this
new tax.
Friend, demand Labour National rule out their Ute Tax

Friend, the
Taxpayers' Union is about accountability and that includes holding the
current government to their word. We didn't defeat Labour's Ute Tax
just for National to give us their own!
If you are
not in a National Party electorate, email your closest National MP
instead.
It's essential
that every National Party MP knows that this tax grab won't go
unnoticed. That's
why we need you to take action now.
Please take 30
seconds to email your local National MP to demand they rule out this
Ute Tax 2.0.
Thank you
for your support.
 |
 Jordan
Williams Executive Director New Zealand Taxpayers’
Union.Â
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