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Federated Farmers oppose increases to Ute Tax

Tuesday 2 May 2023, 2:11PM

By Federated Farmers of New Zealand

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Federated Farmers are opposed to increases to the Ute Tax announced this morning, says transport spokesperson Mark Hooper.

"This is just another cost on a productive sector already under huge pressure with rapidly increasing costs and slipping commodity prices.

"We’ve opposed the Ute Tax from day one because farmers don’t have viable or reliable alternatives to get the job done on their farms - and now the Government is increasing it," Hooper said.

"Farmers aren't driving utes as some sort of status symbol. We have a genuine need for reliable four-wheel drive vehicles to tow equipment and get around our farms safely."

Today’s announcement will increase the maximum fee charged on the registration of a new ute to $6,900 (up from $5,175 previously), and the registration of a used ute to $3,450 (up from $2,875).

"Farmers shouldn’t be taxed on their work vehicles to subsidise wealthy Tesla owners in Remuera and Karori. That's just wrong.

"Today's announcement is a bitter pill to swallow for farmers who are already being hammered with all sorts of cost increases," Hooper said.

"Instead of heaping new costs on to a productive sector, the Government should be focusing on sorting out the state of our pothole-riddled rural roads.
"If they don't get on to that soon, we might need a ute to go anywhere."