Like Rust Simon Watts Does Not Sleep But He Has Back Tracked On This – Updated With Details.

UPDATE AT 6.20PM from the Taxpayers Union though X (formerly Twitter.

New Zealand Taxpayers’ Union

@TaxpayersUnion

Job done. The ute tax is dead and buried. National have confirmed they won’t bring it back — a massive win for every tradie and farmer who needs their ute to work.

Thanks also to Ele Ludemann at Hompepaddock who brought this to my attention.

Not content with stuffing up Local Government this time as Revenue Minister Watts is intent in kicking anyone who owns a Ute in the Guts.

Again from the Taxpayers Union is this Breaking News right from he Top with the Author being Jordan Williams.

Jordan Williams Unsubscribe	11:50 AM (2 hours ago)
to me

Hi, Two years ago, the National Party campaigned against Labour’s Jacinda Ardern/Chris Hipkins’ outrageous “Ute Tax”. Well, in the most astonishing turn of events, we can confirm that National’s Climate Change and Revenue Minister, Simon Watts, has instructed officials to develop new tax rules that will smash ute owners even harder than Jacinda Ardern’s original Ute Tax! As reported by Radio NZ: Under the change, farmers with a mixed used farm ute costing $70,000 will be hit with an annual [Fringe Benefit Tax] bill of $6370, at the proposed 26 percent rate for petrol and diesel vehicles. “Farmers are buying vehicles at Fieldays, looking forward to a reduced cost thanks to depreciation deductibility, but oblivious to the tax grenade coming their way in 12 months,” [Findex tax advisory partner Craig Macalister] said. “Worse still, any vehicle over $80,000 – such as a $75,000 ute with $6000 in extras – will be classified as 100 percent taxable. Labour’s Ute Tax hit only when you bought a new ute. Simon Watts’ Ute Tax 2.0 will see the tax payable each and every year! Currently, if you use a ute mostly for work, you can keep a logbook and avoid FBT, provided private use is genuinely minimal. That’s only fair. But, Watts wants to remove the logbook system and slap a flat tax on nearly every ute in the country, regardless of how it’s actually used. He’s getting IRD officials to say it’s about ‘simplification’. Yeah right! It’s nothing short of an on-farm tax grab. Labour’s Ute Tax maxed out at a one-off $5,175. Simon Watts version is much harsher. Say you buy a Ford Ranger “Raptor” (currently listed online for $86,990). Under the current rules, assuming it’s mostly a work vehicle and personal use is incidental, no FBT is payable. Under Simon Watt’s proposed tax rules, $6,318 or even $8,213 will be payable in Fringe Benefit Tax in the first year alone! (The exact amount will depend on the driver’s marginal/income tax rate).  It’s not principled – it’s nothing short of a $100+ million tax grab from farmers and tradies. For utes worth $80,000 or more, FBT will be deemed to apply at 100% even if there is no personal use or benefit.  Watts going on? Has this National Party Climate Change Minister gone rogue? This isn’t some IRD brain fart or just officials getting ahead of themselves.  According to documents uncovered by the Taxpayers’ Union yesterday afternoon, Minister Watts has been proactively asking IRD to do work on hiking FBT on utes and work vehicles! Do National Party MPs even know Watts going on?Just last week, at National Fieldays, Christopher Luxon and Nicola Willis were literally bragging that they scrapped Labour’s Ute Tax! Here is one of the National Party’s social media posts from just two years ago: The National Party are either being super sneaky or simply doesn’t know what their Climate Change/Revenue Minister has been up to. As far as we can tell, nothing has gone to Cabinet – it’s all being snuck through buried within business-as-usual annual IRD tax amendments. We’ve rushed to create an email tool for you to contact your local National MP and demand they scrap Simon Watts’ Ute Tax 2.0. A $100 million tax grab targeting ute owners According to IRD estimates, based on the assumption that the policy change would impact just 30% of the number of double cab utes (which our own tax policy expert say is likely to be a gross underestimate), the “fiscal impact” of the Simon Watts’ proposed changes is a whopping $100 million. That’s $100 million in new ute taxes each and every year! So much for “Going for Growth”. The very people holding up New Zealand’s economy right (farmers, tradies, etc) are the ones set to be targeted by this new tax.Phillip, demand Labour National rule out their Ute Tax The Taxpayers’ Union is about accountability and that includes holding the current government to their word. We didn’t defeat Labour’s Ute Tax just for National to give us their own!  Email your local National MP to demand they scrap the Ute Tax 2.0 If you are not in a National Party electorate, email your closest National MP instead. It’s essential that every National Party MP knows that this tax grab won’t go unnoticed. That’s why we need you to take action now. Please take 30 seconds to email your local National MP to demand they rule out this Ute Tax 2.0. Thank you for your support. Jordan Williams Executive Director New Zealand Taxpayers’ Union.

Now to get on and get my email off. I won’t limit it to my Electorate MP I will try and pick out most of the MP’s with farming backgrounds as well as other party leaders and I won’t forget PM Luxon – that might get Watts another kick in the balls.

Maybe even Hipkins, Barbara Edmonds and Chloe even if she might struggle to understand what it means. That might make it a bit hot for Minister Watts at the next question time.