Tax policy: Indirect taxation

Labour

No change to GST, by far the largest source of indirect tax. The other main sources are excises on tobacco, alcohol and petrol. None of these raises enough revenue to cover the costs to the public purse of the activities which they tax.

National

Abolish carbon tax. No change to GST or petrol tax.

NZ First

Re-introduce programme to apply an increasing proportion of petrol tax to transport infrastructure. Investigate fairness of local government rating, including GST on rates and the non-service component of rates. Explore tax incentives for health insurance, research and development. No policy on carbon tax yet.

Greens

Phased introduction of eco-taxes, which the party considers is a tax shift. Carbon tax of at least $15 per tonne of C02 - the Government rate - from April 1 2006, put diesel and petrol on a more level footing with a diesel levy of about 18c/litre, eco-tax reform commission to study cuts in both income and company tax, and study capital gains tax.

Act

Reverse Labour's 5c a litre additional petrol tax, and all petrol tax should go straight on roads. Abolish carbon tax and all gaming taxes.

United Future

Remove GST from rates. Ensure a significant proportion of fuel taxes collected in a region goes to road improvements in that region. Ensure tax from tobacco and alcohol goes directly to health budget. Withdraw from Kyoto Protocol and axe carbon tax.

Progressive

No change to indirect tax rates. Advocated for Budget 2005 changes including increases in fringe benefit tax thresholds, depreciation rate adjustments, payroll assistance for small business, streamlining of GST and provisional tax to reduce compliance costs, tax deductions for research and development.

Maori Party

No policy released yet.