National leader Christopher Luxon remains confident in his tax plan despite the ongoing criticism of an alleged gaping financial hole.
He believes people are overlooking the pent-up demand for luxury houses in New Zealand fuelled by the buyers' ban and the brightline test.
National is promising tax cuts which it has said will be paid for by four key tax changes and reprioritising and cutting Government spending.
One area of its plan that has created heated debate is its 15 percent foreign buyer tax on houses worth more than $2 million.
However, economists from both the left and right of the political spectrum have said there is a massive financial hole in the plan, with the revenue falling roughly $500 million short.
It has been a huge topic of debate in recent weeks with economists and Labour calling for National to fully release its costings. While the party has released a report on its tax plan, it refuses to release the full model.
Luxon spoke to co-host Rebecca Wright on Newshub Nation, aired on Saturday, to discuss the controversy surrounding his tax plan.
The National leader said the party looked at the example scenario in the plan of "Rachel", a tech entrepreneur from the US.
Rachel had applied for a working visa to start a company in New Zealand. She wanted to buy a $3 million dollar apartment and under National's plan she can but will pay a 15 percent tax fee.
"Before the foreign buyer ban was in place there were 4000 houses that were sold to foreigners in New Zealand. What we're saying is we think there will be less than half, about 1600 or 1700 houses, what our plan is about," Luxon said.
"We also think there is a lot of pent-up demand - we have had a foreign buyer ban in New Zealand for a number of years and we've also had a brightline test which discourages people from selling properties."
He said there are almost 100,000 homes in New Zealand worth more than $2 million and the plan aims to sell at least 1600 to overseas buyers, excluding Australians and Singaporeans, every year for four years - a total of 6400.
But Wright pointed out the plan means they need between 1600 and 1700 people like "Rachel" coming to New Zealand.
"What we are saying is, look, we actually want someone like her to come to New Zealand and invest in New Zealand," Luxon said.
He believes people are underestimating the demand for luxury houses in New Zealand that has been brewing for years.
"I am confident and competent. I understand the economy, I understand numbers, I understand how it works."
Luxon said there are no conditions that would make National rethink the tax plan.
"We are rock solid in the tax plan," he said.
"At the end of the day what this is about is making sure we get tax relief to working New Zealanders."
Watch the full interview above.
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