Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

National pledges relief on petrol excise

Don Brash MP
National Party Leader

12 September 2005

National pledges relief on petrol excise

A National Government would reduce petrol excise by 5 cents per litre as a means of returning the windfall GST currently being collected on the record high prices of petrol.

“This commitment would be acted upon immediately to take effect on 1 October 2005, and the reduced excise level would apply until 1 April 2006 when the National’s programme of tax reductions will come into effect,” said National Party Leader Don Brash on the campaign trail in Pukekohe today.

“This will give much needed relief to all motorists, small business, and farmers.

“One of the key points of difference between the National and Labour parties in this campaign is that the National Party is opposed to over-taxation - revenues that are beyond the government’s reasonable requirements.

“I want to emphasise at the outset that the reduction in excise will not result in a reduction in funding for our roading programme.

“In recent weeks we have seen world oil prices reach very high levels indeed, and petrol prices in New Zealand rise accordingly.

“The consequence has been that the 12.5% GST collected on those high prices is now presenting the government with a substantial tax windfall. On the other side of the coin, those high prices are causing very substantial hardship for many New Zealand families.

“Despite that windfall profit from GST, the National Party is totally opposed to any tinkering with GST. But GST on a litre of petrol has risen from about 13 cents a year ago, to 17 cents at today’s petrol prices.

“The reduced excise will result in motorists paying $100 million less in excise duty during the six months from 1 October 2005 to 1 April 2006, to be offset, of course, by the windfall GST component. So, even after making the changes I have announced today, it is likely that the reduced excise will have a negligible effect on overall Crown revenues.

“With the impact of Hurricane Katrina, it is now unlikely that oil prices will fall dramatically over the next six months, but were they to do so, this would result in a modest overall impact on Crown revenues.

“The National Party believes that the government is, in effect, profiteering at the expense of motorists under the current conditions. Accordingly, we see the modest, temporary reduction of excise I have announced today as the fair and sensible short-term path to take.

“Our income tax reductions from 1 April 2006 will, of course, give much more substantial relief,” said Dr Brash.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election