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New Zealand’s Labour touts tourist tax

New Zealand’s Labour touts tourist tax

WELLINGTON: New Zealand’s opposition Labour Party will slap a tax on tourists to help fund new infrastructure and pour billions of dollars into health and education if it is voted into office next month.

The party unveiled its first detailed fiscal policy on Tuesday, just weeks away from the September 23 national election.

The election is shaping up to be a tight race as Labour closes in on the governing National Party following the promotion of charismatic Jacinda Ardern to the leadership earlier this month.

Labour said on Monday it plans to charge every visitor a NZ$25 fee ($A22.80) which would be ring-fenced for a NZ$75 million ($A68.4 million) fund to pay for infrastructure throughout the country.

The party would speak with customs and immigration officials to find the most efficient way to collect the levy, Labour tourism spokesman Kris Faafoi said.

A record surge in tourism in the last three years has fuelled New Zealand’s impressive economic growth, but left the Pacific nation’s infrastructure straining, with locals complaining of everything from clogged small town public toilets to once-tranquil nature walks crowded with people and rubbish.

The small nation with a population of around 4.5 million has seen visitor numbers leap 30 per cent since 2014 to 3.6 million in the year to June, according to data from Statistics New Zealand.

Labour said on Tuesday its proposed spending, including NZ$8 billion ($A7.3 billion) extra on healthcare and NZ$6 billion ($5.47 billion) on education, would be partly funded by ditching tax cuts planned by the National Party.

The National Party has pledged to effectively deliver a tax cut by lifting income tax brackets across the board, lowering the amount paid at a higher rate, from April under a so-called “family package” to appeal to voters.

Labour surged 13 points to 37 per cent on the popularity of newly-appointed Ardern in a poll released in mid-August, while the National Party dropped three points to 44 per cent.

Both parties will need the nationalistic NZ First Party to form a coalition government.