Expedia’s exit from market shows App Tax will reduce competition and raise prices

The Taxpayers’ Union is urging the National Party to reconsider its decision to implement the App Tax it campaigned to repeal following reports that Expedia will remove thousands of accomodation providers from its platform when the new tax comes into force.

Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“New Zealanders are already seeing signs of the devastating impacts that will result from National’s app tax. With major accomodation providers pulling out, consumers will be left with less choice, less competition and higher prices.

“The affects of this tax are not limited to those who use or provide app-based services. When there is less choice and competition, traditional accomodation providers are able to put their prices up higher which will force all consumers to pay more.

“Thousands of people have already used our email tool to tell Nicola Willis to Scrap the App Tax. National rightly campaigned against this unworkable and unaffordable tax yet now they are doing the opposite of what they promised. Instead of cutting waste and providing tax relief, they continue to dish out corporate welfare and introduce new taxes.”