Callum Purves: National preparing to keep Labour's 15% App Tax

Labour's App Tax is a 15% sales tax paid for by the mum and dad accommodation providers, takeaway joints, and ride share drivers. The App Tax hits sole-traders who sell their services through an app or website such as Uber or Airbnb. It will add even more to the costs of living for every Kiwi who buys or books services online.

For any other small or micro-business, IRD's $60,000 de minimus amount applies before a taxpayer is required to register for GST. But not under this new App Tax. If you rent your spare bedroom, or family bach for just one night through an app, your earnings will uniquely be taxed.

Before the election, Nicola Willis pledged to scrap Labour's App Tax. In fact, the National Party ran a campaign featuring a video 'Axe the App Tax!'


Click to watch

In a media release last year, Willis said:

“This is simply another tax grab from Labour to fuel their wasteful spending. When they run out of their own money, they come after yours ... We will fight against this new tax every step of the way. National opposes the App Tax and if elected we will reverse it."

But just weeks into Government Ms Willis wants to plough ahead with Grant Robertson's policy. This despite IRD officials indicating that the tax is so complex, and unfair, they assumed it would not proceed and had stopped working on it. But that has suddenly all changed.

To put it simply, this isn't what New Zealanders voted for, and for those struggling to make ends meet driving for Uber, or renting the spare bedroom on Airbnb, it's a kick in the teeth. And it's for that reason, today we are officially re-launching National's own campaign to Scrap the App Tax.

Send government a message before it is too late.

Callum Purves manages the day-to-day operations of the Taxpayers' Union including their campaigns, communications, research and grassroots engagement. He has a Master of Arts in Economics from the University of St. Andrews. This article was published HERE