Election 2023: Watch: Ibrahim Omer says Labour ‘has not given up’ on wealth tax - it is ‘part of our discussion’

Labour MP and Wellington Central candidate Ibrahim Omer told a candidate’s debate on Sunday that Labour “had not given up” on the idea of a Wealth Tax, despite leader Chris Hipkins ruling it out for as long as he is leader.

In a video obtained by the Herald, Omer responds to an audience question about whether Labour supported the wealth tax by saying that while Hipkins back-tracked on the tax, it the party was still discussing it.

Omer said he understood Hipkins’ decision but said that neither he nor the party had given up on the idea.

“I think there is going to be a time for that. Labour Party has not given up on that,” Omer said.

“The leader, for reasons that I understand, put it aside, but it is part of our discussion,” he said.

Annabel Young, a former National MP who is volunteering for National’s candidate in the electorate, Scott Sheeran, was at the debate.

Young told the Herald Omer’s question was a “follow-up question to an earlier question in the evening. The earlier question was, ‘do you support a wealth tax?’ and he said he did”.

“The follow-up was, ‘does your party support a wealth tax?’ and that is when he made this answer,” she said.

Hipkins said Omer was “wrong there.

“We’re definitely not implementing a wealth tax,” Hipkins said.

“I’ll certainly take it up with him, we’re certainly not implementing a wealth tax,” he said.

Hipkins said there were no discussions taking place on a tax currently.

Omer told the Herald, “the Labour tax policy is clear – we are not proposing a wealth tax if re-elected. Caucus has agreed that position and it’s not up for debate”.

“However as the Prime Minister said today the Labour Party is democratic organisation and party members can discuss whatever policy they like,” he said.

“All I was trying to convey was if people want to look at in the future they can, but it is not a policy for our next term,” he said.

Labour had looked at including a wealth tax in the most recent budget. The proposal was championed by Finance Minister Grant Robertson and former Revenue Minster David Parker, who asked to be moved on shortly after the proposal was scotched by Hipkins.

“I thought it was untenable for me to continue,” Parker said at the time. Robertson said he supported the tax but accepted the outcome of Hipkins’ decision.

In a debate this morning, when alerted to the existence of the video by National’s Nicola Willis, Robertson said the wealth tax was not up for discussion.

“Don’t spread misinformation,” he told Willis. It appears however, that some members of the Labour caucus continue to discuss it.

Thomas Coughlan is Deputy Political Editor and covers politics from Parliament. He has worked for the Herald since 2021 and has worked in the press gallery since 2018.