New Zealand


  • Service: Tax
  • Type: Business and industry issue
  • Date: 18/03/2013

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Taxmail - Car park tax proposals scrapped 

Issue 2 - March 2013 


The Ministers of Finance and Revenue have announced that much criticised proposals to tax employer-provided car parks will not proceed.  The proposals would have taxed Auckland and Wellington CBD car parks and certain leased parks outside of these areas.


Proposed car tax
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While Ministers noted the fairness considerations underlying the proposals remained, the compliance costs, compared with the likely return (additional revenue of $17 million per annum), did not make them worth pursuing.

KPMG welcomes the announcement which takes into account the disproportionate compliance burden that would have been imposed on employers (and the costs on employees).


Tax policy involves trade-offs between simplicity, certainty, fairness and accuracy. In the case of the car park tax proposals, the level of complexity and associated uncertainty outweighed any fairness or accuracy benefits, in our view.


Government should be commended for taking a pragmatic view and making the right call.

Taxmail - Comment on topical tax issues from KPMG NZ Tax. 
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