Bill English has come out swinging at Labour after their tax plan U-turn promising to not implement any new form of capital gains tax after this election, labelling it as a postponement, with the "real test" being changes to income tax.
Earlier, Finance spokesperson Grant Robertson announced the party won't implement any new form of capital gains tax until after the 2020 election, if elected.
"It turns out now they won't follow through because they think there's a big political risk with it. They've been pushed into postponing something they want to do."
Speaking to media at Parliament this morning, Mr Robertson said that was no longer on the table.
"We have heard the call for New Zealanders' voices to be heard," Mr Robertson said.
"We will involve the public at every stage of the Working Group, as well as Cabinet and Parliament's consideration of any changes that arise from it."
But Mr English said "the real test is around income taxes".
"Labour has expensive promises."
He said as the drop implemented by the government in the two lowest income rates was already in legislation, Labour would have to go through parliament to reverse those tax cuts.
"That's the bit that matters," Mr English said. "Today's announcement doesn't change that."
"We're still seeing hard working New Zealanders as if they're some kind of ATM."