Local National MPs say Labour's criticism of tax disparities between farmers and those on wages shows "financial incompetence".
Tukituki MP Craig Foss said the figures published on Wednesday were "misleading".
Figures showing the tax paid by dairy farms were released by Labour's revenue spokesman, Napier-based Labour list MP Stuart Nash, ahead of
the Budget announcement yesterday.
Information from the Inland Revenue Department for the 2009-2010 tax year shows the average tax payment by dairy farms was $1506.
A couple earning superannuation would pay $3136 in tax, while a wage earner on the average wage would pay $8000 in tax.
"We need to be encouraging and growing our exports, not running down our productive economy and vital primary sector," Mr Foss said. "The figures Labour are using to beat up on our farmers are misleading and display a frightening level of economic illiteracy. Business NZ and DairyNZ have stated that these figures are wrong."
Napier MP Chris Tremain said Labour's figures suggested farmers should be paying tax on turnover, not profit.
"Labour's figures don't include any of the costs or expenses incurred, such as debt servicing costs, payments to staff, fencing, fertiliser, or equipment."
The "misguided attack" would widen the urban/rural divide and generate resentment, Mr Tremain said. "Labour should be ashamed."
Mr Nash said he never suggested farmers should pay tax on turnover, only on profits or income.
"I agree farming is the back bone of the New Zealand economy but there are two questions that need asking," he said. "As a country should we be concerned about the complete lack of profitability of the farming industry, or are farmers claiming expenses too much and minimising the tax back to the country?"
