Labour Proposes Water Tax

August 7, 2014 New Zealand Taxation

water taxThe Labour Party is looking to use targeted taxes to encourage farmers to make better use of waterways for irrigation.

Earlier this week the spokesperson for water of the Labour Party Meka Whaitiri announced a proposed initiative aimed at cleaning the nation’s waterways, lakes and rivers by charging a tax on the use of water resources for irrigation of farms.

In its statement the Labour Party stated that the tax will be a resource rental “on any large water takes for irrigation”, with the collected revenues to be used for funding to “ proposals for water storage and irrigation schemes provided they have a broad consensus from their communities.”

It is expected that levying a tax on water will encourage farmers to make more efficient use of resources, and may push for a greater utilization of efficient technologies in farming.

Explaining the importance of implementing better controls for the use of water in farming, Meka Whaitiri said that “…dirty water is not just a rural issue,” and that the Labour Party aims to ensure that all “ New Zealand’s water lakes and rivers are swimmable, fishable and suitable for food gathering.”