The Government has denied it's Clear Car Discount breaking tax promises.

It yesterday announced a fee would be tacked on to newly imported, higher emitting cars from January 2022.

Meanwhile, Kiwis who opt for an electric vehicle will be offered big discounts on both new and used car from July 2021. 

Finance Minister Grant Robertson told Heather du Plessis-Allan it's just about offering people options.

"We've still got a second hand market underway here. This is not a tax, and I just do not accept that that goes against what we said."

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