If Labour is so concerned that an increase in tax will hurt low income families – as demonstrated by Labour’s ‘axe the tax bus’ against a 2.5 percent increase in GST – then why isn’t Phil Goff prepared to stand against the ETS tax and campaign for it to be scrapped, ACT New Zealand ETS Spokesman John Boscawen said today.
“Low income families will be hit hard when the ETS tax causes electricity and petrol prices to rise by 5 percent on July 1 this year. However, unlike National’s proposed increase in GST, there will be no compensation to low income earners for this new ETS tax,” Mr Boscawen said.
“Not only will the new ETS tax increase the price of electricity and petrol, but it will see the costs of all goods rise as businesses raise their prices to cover the extra costs.
“It was Labour that first introduced this new tax, and if National had not amended it, on Jan 1 this year all kiwi families would have been facing a 10 percent increase in their power bills. It seems very hypocritical that Labour was happy to see a tax of 10 percent introduced on electricity, but are now fighting against a 2.5 percent increase in GST.
“The ETS tax will put pressure on many low income families already struggling to pay their bills. If Goff really cares about low income families then this is the tax that Labour should be fighting to axe,” Mr Boscawen said.
Tags: Emissions Trading Scheme