Luxon signals potential fuel tax hike and accommodation levy

New Zealand Prime Minister Christopher Luxon has indicated that if the National Party is re-elected, the government may consider raising the fuel excise tax and introducing an accommodation levy.

Luxon clarified that while the party aims to avoid new taxes on "working people"—explicitly ruling out capital gains, wealth, death, gift, and income tax increases—existing levies like the fuel excise tax may need adjustments. He noted that fuel excise has historically been used to fund roading infrastructure. Regarding the fuel tax, Luxon mentioned that while previous plans for scheduled increases might be unlikely in the immediate term due to global fuel crises, a lift may be necessary at some point during a three-year term.

The proposed accommodation levy is being discussed as a method to fund infrastructure and other costs, a concept already included in regional deals for Auckland. These potential fiscal measures come amid ongoing cost-of-living concerns and high unemployment rates, particularly within Māori communities.