Prime Minister Christopher Luxon and Labour leader Chris Hipkins rule out supporting TOP’s 0.5% agricultural land tax aimed at funding a universal basic income.
New Zealand’s main political parties have firmly rejected a proposal by The Opportunity Party (TOP) to introduce a 0.5% tax on farmland. TOP, which has been polling near the 5% threshold required to enter Parliament, introduced the policy as part of a broader tax overhaul. However, unequivocal opposition from both government and opposition leaders has effectively removed the proposal from post-election coalition negotiations.
TOP’s tax package combines a 0.5% tax on agricultural land with a 1.75% levy on urban land, designed to generate revenue for a universal “citizen’s income” of $19,400 annually for every adult. Party leadership argued that taxing land values would compel landowners to maximize agricultural productivity while lowering land prices to help younger generations enter farm ownership.
Prime Minister Christopher Luxon explicitly ruled out forming a coalition government with TOP if the farmland tax remains party policy. Supporting the government’s stance, Associate Minister of Agriculture and New Zealand First MP Mark Patterson strongly criticized the proposal, characterizing a broad-based land tax as “ruinous for agriculture” and damaging to rural communities.
Opposition leader Chris Hipkins also “absolutely” ruled out a land tax under a Labour-led administration. However, senior Labour MP and former agriculture minister Damien O’Connor noted that while Labour rejects general land taxes, the party continues to favor a targeted capital gains tax on secondary properties as an alternative mechanism to manage property speculation.
Agricultural lobby group Federated Farmers strongly condemned TOP’s policy, estimating that the 0.5% land tax would cost producers five times as much as the previous government’s proposed methane emissions tax. Industry representatives warned that imposing high fixed land holding costs during a period of tight farm margins would push financially vulnerable farmers toward insolvency.
Source: Farmers Weekly
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇺🇸 eDairy News INGLÊS: https://whatsapp.com/channel/0029VaKsjzGDTkJyIN6hcP1K
