A proposal to tax employer-provided car parks in Wellington CBD has unions, business leaders and even Parliamentary Service riled.

Legislation before a select committee would put a fringe benefit tax on all employer-provided car parks in Auckland and Wellington's central business districts.

Unionists and business groups have joined forces in a rare alliance to lash out at the new tax, which they say would mean businesses would pay an extra $1500 per year for every on-site car park, and almost $2400 for commercially supplied parks. 

The Parliamentary Service, the organisation which runs Parliament, is also opposed.

General manager Geoff Thorn said the tax was neither fair nor neutral, particularly for organisations that had no choice but to be located in the central city.

''We are not similar to other organisations. Due to the need for our offices to be close to Parliament, we are not able to relocate outside the CBD to avoid this significant tax cost.''

Parliament provides free car parking for those working in the parliamentary complex on a first-come, first-served basis. 

Some senior managers and MPs also have allocated car parks.

The proposed change was aimed at a small group of taxpayers and the rationale was unclear, Mr Thorn said in a submission to the select committee considering the legislation.

"The proposed rules for determining taxable benefit values appear very complex and will impose significant administration and compliance costs, which will ultimately be funded by ordinary taxpayers.''

He recommended that the ''proposals should be deleted in their totality''.

Deputy Prime Minister Bill English said the Government wanted to see holes plugged ''but we've got to make sure that doesn't create excessive compliance costs''.

- © Fairfax NZ News

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