Te Pāti Māori unveils 'Kiwi tax plan' with new 5 percent 'stamp duty'

Te Pāti Māori has unveiled its "Kiwi tax plan" for the November election, which retains some policies from last election, tweaks some others, and launches an entirely new one.The party's announcement on Wednesday afternoon laid out the nine key tax changes the party wanted to see, with just one it had not previously campaigned on: a new 5 percent "stamp duty".Documentation provided by the party suggested this would apply to "residential sales, excluding first home buyers for homes under $1 million".Nothing to do with postage, a "stamp" or "transfer" duty is a tax on property, land and sometimes other transactions like vehicle sales, military commissions, or marriage licenses depending on the jurisdiction.Such a tax resembles a capital gains tax, but stamp duties are typically charged to the buyer rather than the seller.They are used in countries including the United Kingdom, United States, the European Union, India, Singapore, Indonesia, the Philippines, Ireland, Sweden, Denmark and some Australian states.Spot the differencesThree of the policies in the party's offering were revisions on ideas presented at the last election.The promise to remove GST from fresh food is now a "targeted tax credit" for those earning under $60,000 a year, with the party saying the payment would be "equivalent to eight weeks of kai".The policy document was unclear on just how much that would be or how it would be administered.The party's proposal for a wealth tax - 1.5 percent on "net wealth" above $2 million, rising to 2 percent for wealth above $5m, and 2.5 percent for $10m or more - was more moderate than the 2 percent, 4 percent and 8 percent it proposed in 2023.Te Pāti Māori also doubled its promise for extra funding to tackle tax evasion and fraud, from $500m to $1 billion.The remaining four policies were exactly the same as the 2023 proposals, including income tax adjustments, returning the company tax rate from 28 percent to 33 percent, and introducing land banking and vacant house taxes, both also at 33 percent.The party said its proposed rebalancing of income taxes would see 97 percent of New Zealanders paying less income tax, with about 4.2 million people to receive "on average, an additional $4000 a year"."This is a policy for everyone. Whether you are a cleaner, a nurse, a teacher, a tradie, a pensioner or raising a whānau, we want you to keep more of what you earn," the party said."People across Aotearoa are feeling the squeeze. The kai bill is up. Housing costs are up. Power is up. Everything is taking a bigger bite out of the household budget. Our answer is simple: put pūtea back in people's pockets and give Aotearoa some room to breathe."The party said it was named the "Kiwi tax plan" because it was "a tax policy for everyone"."This isn't about Māori versus non-Māori, or workers versus business. It's about building an economy that works for the overwhelming majority of people who call Aotearoa home."