Government must back down on iPad tax too

Tuesday 19 March 2013, 2:52PM
By Labour Party

The National/United Future Government’s plans for its petty iPad and cellphone tax should be dumped following Revenue Minister Peter Dunne’s appalling admission that due diligence for it hasn’t been completed, Labour’s Revenue Spokesperson David Cunliffe says.

“Yesterday the Government was forced into a humiliating U-turn on its fringe benefit car park tax after an alliance of the Labour Party, unions and business highlighted it would cost more to collect then it would raise, all while jeopardising worker safety and doing nothing to improve public transport.

“But the very next day Peter Dunne is ramming ahead with a new tax on iPads and cellphones – while also leaving himself wriggle room in case he’s vetoed by Cabinet again, and all because he hasn’t done his sums.

“Peter Dunne’s bob-each-way position provides no certainty for either business or the employees who rely on cellphones, tablets and laptops to maintain a balance between work and family.

“The iPad and cellphone tax is just the latest petty and uncosted new levy created by a failed Government desperate to mask the flaws in its trickle-down dogmas. It comes hot on the heels of the paperboy and papergirl tax and follows the broken-promise increase to GST.

“The petty, grasping tax shambles does not bode well for the future of the lame-duck Minister of Revenue or the National/United Future coalition.

“Instead of putting their hands in the pockets of iPad and cellphone users, the government should implement reforms that will help the economy, like Labour’s pro-growth capital gains tax and research and development tax credits,” David Cunliffe said.