Labour Party pledges no fuel tax increases for three years

The New Zealand Labour Party has pledged not to increase the fuel excise tax for three years if elected in the upcoming November election. Labour Leader Chris Hipkins stated that the party intends to ‘hit pause immediately’ on the planned 2027 tax increase, citing the ongoing cost-of-living crisis and international pressure on oil prices.

Finance Minister Nicola Willis noted that the government had previously indicated it would not increase fuel taxes on January 1 next year, though she suggested a gap exists between Labour’s revenue intentions and their outlined tax policies. Transport Minister Chris Bishop previously described the 2027 increase as an ‘outstanding issue’ and noted that any decision to cancel or defer the tax hike must be evaluated for its fiscal impact on the Crown books.