Labour Party leader Chris Hipkins has drawn a line under speculation about the Party’s tax policy for the election by ruling out a wealth tax and capital gains tax.

“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,” Chris Hipkins said.

“With many Kiwi households struggling, now is simply not the time for a big shake-up of our tax system.

“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.

“While work was already underway on a potential wealth tax and CGT as part of a tax switch in the Budget I ultimately made the call not to proceed with it. We simply didn’t have a mandate to implement those tax changes.

“Instead we have 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.

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“The reality is National’s tax cuts are 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.

“Details of our tax policy will be released soon, but New Zealanders can be assured the Government I lead is listening and will be focused on making life a little easier without implementing big uncertain changes,” Chris Hipkins said.

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