Farmers express concerns over water tax recommendation

More farmers are speaking out, following last week’s Tax Working Group recommendation -- to introduce a water tax, on all types of water use.

DairyNZ is challenging the report -- it says changes to the tax system should be considered alongside other potential changes for farmers.

Chief executive Tim Mackle says DairyNZ has strong concerns of a system that looks likely to have significant implications for farmers across a broad range of areas.

He says farmers are facing a number of potential environmental and financial pressures, which has seen many invest heavily in the environmental sustainability of their farm businesses.

If an environmental tax was also introduced, it is likely those farmers who are motivated to invest in improving environmental performance will have resource diverted, says Mr Mackle.

Sam Gardner