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Labour Raises Petrol Tax for Third Time

Labour Raises Petrol Tax for Third Time

Legislation introduced to Parliament today will create the third unnecessary increase in petrol levies since Labour came to power, ACT New Zealand ACC Spokesman Heather Roy said today.

"The Injury Prevention, Rehabilitation and Compensation Amendment Bill will increase the petrol levies used to fund ACC from 2.3 cents a litre to 5.08 cents - a 2.78 cents a litre rise.

"Labour is hoping motorists won't notice their blatant tax grab because of the volatility in oil prices caused by the conflict in Iraq.

"The 5.08 cent-per-litre increase comes on top of the July 1, 2001 Crown Revenue Petroleum Excise Tax increase (from 17.8c/l to 18.5c/l) and the March 1, 2002 National Roads Fund petrol tax hike (from 13.525c/l to 17.725c/l).

"And like the previous two increases, this tax hike is completely unnecessary. Injury prevention? The rate of serious injury and death has steadily fallen by 30 percent over the past decade, while the number of registered cars has increased by 30 percent.

"The Government has inflated its estimate of future ACC claimant costs, so it can justify getting even more out of today's motorists. The result is that this Labour Government can build up a fund. It's just the same as Dr Cullen's fiddle with income taxes - he overtaxes workers so he can achieve a "surplus".

"This is an anti-motorist, nonsensical tax hike which will hit every New Zealander in the pocket," Mrs Roy said.

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