Labour's Capital Gains Tax Punishes Kiwis for Inflation

The New Zealand Taxpayers’ Union is calling Labour’s proposed capital gains tax (CGT) an unfair and poorly thought-out policy that punishes ordinary New Zealanders for inflation, not real gains.

Taxpayers’ Union spokesperson Tory Relf said:

“Labour’s capital gains tax is effectively a tax on inflation. Around 40 percent of house price growth over the past three decades has simply been inflation, not real profit, yet Labour wants to tax it anyway. That’s not fair or sensible economic policy.”

“By refusing to adjust for inflation, Labour is taxing people on phantom gains. It means someone could sell a property for the same - or lower - real value they bought it for but still get hit with a 28 percent tax bill.”

“If Labour genuinely wanted to broaden the tax base, it would have made the policy revenue neutral by lowering other taxes. Instead, it’s just another cash grab dressed up as reform.”