An email from the Rural Nats clears up the issue of a fringe benefit tax on utes:
Nobody backs Kiwi farmers more than National.
We want to make that crystal clear, because there’s been a couple of misinformed stories floating around about new taxes coming for utes.
This is absolutely not true.
Farmers and tradies are the backbone of New Zealand’s economy.
To be clear, we will NOT be hitting Kiwis with any new taxes on utes – full stop. And that includes changing fringe benefit tax.
Our hardworking rural communities are driving this country’s economic recovery, and we want to set them up to succeed.
That’s why we binned Labour’s ute tax immediately, and it’s why we’re making it cheaper to buy new work vehicles. I encourage everyone to check out our Investment Boost policy, which would allow farmers, tradies and other businesses to write-off a big chunk of any new asset they buy.
We back our farmers, and we’ll continue to do so.
Rural Nats
No new tax and not change to the fringe benefit tax.
That’s as it should be from a government committed to reducing compliance costs and encouraging businesses to grow.
Homepaddock 
[…] No ute tax […]
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Were the NZTU and I (for believing them) conned yesterday HP.
I note that refuting of that Ute Tax through Fringe Benefit Tax enforcement is from `Rural Nats’ and not from Minister Watts.
Do the Rural Nats have enough influence to override the Minister?
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[…] `No ute tax […]
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Simon Said. perhaps goodby
Good morning Peter,
What an incredible 24 hours!
Last night the Prime Minister’s Office stepped in and overruled Simon Watts.
Within six hours of our email, Christopher Luxon’s office went into damage control and has now totally ruled out Watts’ “Ute Tax 2.0” and the proposed Fringe Benefit Tax raid on work vehicles.
After we blew the whistle yesterday, our phones ran hot from media interested in the story and asking for the Ministerial papers.
What became clear is that despite the Climate Change and Revenue Minister instructing IRD officials to develop the policy – and even had IRD consult with the tax industry on implementation – most of Simon Watts’ Cabinet colleagues just had no idea!
We understand the issue took Luxon’s office by total surprise.
Heather du Plessis-Allan picked up the baton (interviewing the Federated Farmers spokesman) and was first to get the U-turn out of National (listen to it unfold here).
Heather’s producer was provided the following statement from Luxon’s press team in response to the Taxpayers’ Union and Federated Farmers exposing Watts’ Ministerial direction and the IRD’s proposals:
The National Party also rushed out an email last night to its rural members which locks-in the policy U-turn (click to open larger version).
When the documents literally show that IRD officials were instructed by the Minister of Revenue to progress an FBT Ute Tax, the Nats now claiming that those who expressed concern are “misinformed” is political spin at its worst.
It’s almost from the Ardern-era.
But who cares, Peter? As soon as the National Party realised what Simon Watts had been quietly orchestrating this tax grab for months, they saw the political risk and acted quickly to overrule Watts and kill the policy.
The Prime Minister’s office could not be clearer, Simon Watts has been overruled and the Ute Tax is dead.
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PDM in answer to your question at 9:15. I have no inside knowledge on this issue but am sure the Rural Nats don’t have the power to overrule a Minister. However, they can go to the Leader’s office and it looks like that’s what they did here and that’s where the over-ruling came from.
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Thanks HP – more has been learned since my query as per above at 10.17am.
It does not look good for Simon Watts once PM Luxon gets back to NZ – two transgressions referred to the PM in a couple of days.
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