The Government is taking the Digital Services Tax off their books, effectively handing a $479 million tax break to global tech giants, like Facebook and Google.

“First it was tax breaks for landlords and tobacco companies, now it’s multinational technology companies,” Labour finance and economy spokesperson Barbara Edmonds said.

“Under National if you’re already doing well, you can have a tax break to do even better. But everyone else, everyday Kiwis, miss out.

“The message from this Government could not be clearer: if you’re a woman seeking equal pay, or a family trying to get the FamilyBoost payment that was promised to you, then you don’t matter.

“But if a wealthy corporation comes asking for help, they will bend over backwards to give them a break—at your expense.

“Nicola Willis promised Kiwi families $250 a fortnight, but she can’t find a single family who got it. More than a quarter of their FamilyBoost scheme, about $14 million, has been eaten up in bureaucracy instead of going to families as promised.

“They’re telling New Zealanders we need to tighten our belts, but this Government keeps giving handouts to the people who need it least and taking it from the people who need it most.

“Budgets are about choices, and at every turn this Government is making the wrong choices.

“We need a government that is focused on improving the lives of New Zealanders, not making global tech giants like Facebook and Google even more profit,” Barbara Edmonds said.

Note:

The $479 million figure comes from the Half Year Economic and Fiscal Update 2024 (page 76), which states: “The forecasts currently account for a 1 January 2026 implementation and include revenue of $479 million over the forecast period in relation to the DST with an additional $146 million per annum expected beyond the forecast period.”

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