New Zealand PM Scraps 'Bed Tax' Plans, Disappointing Tourism Mayors

New Zealand Prime Minister Christopher Luxon has reversed a proposed "bed tax" on accommodation, a move that has disappointed mayors in popular tourist destinations. The National Party leader announced on Sunday that the promise of "no new taxes" would be upheld in any coalition agreement, leading to the scrapping of the accommodation levy and a previously floated bank tax.

Luxon stated that the bed tax would negatively impact "everyday Kiwis" traveling for short breaks. Similarly, Finance spokesperson Nicola Willis explained that the party could not find a way to tax banks without increasing costs for consumers. The Prime Minister also suggested that a planned fuel excise tax increase for the following year is unlikely to proceed.

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no new taxes

The decision to abandon the accommodation levy has drawn disappointment from mayors across New Zealand's tourism hubs. These local leaders had supported the nationwide levy as a means to fund essential public infrastructure in areas heavily frequented by tourists. Mayors from major cities like Auckland, Wellington, and Queenstown were among those who had backed the proposal.

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everyday Kiwis who are just going away for a weekend in Auckland or Queenstown