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Time To Remove GST From Petrol

24 April 2006

Time To Remove GST From Petrol

“The record high price of petrol and the multiplier on almost every other every day cost for families reinforces that the time is now right for the removal of GST from petrol,” says New Zealand First transport spokesperson Peter Brown

“Removing GST from the price of petrol was one of New Zealand First’s key election promises and following Fridays 6 cent price rise, it has become more pertinent than ever,” said Mr Brown.

Since April last year, the price of filling an average car with 91 octane has increased from $64.75, to a wallet crunching $80.50. Both motorists and retailers are being hit hard by the rise in petrol prices, with retailers no longer able to absorb the escalating costs.

“Removing GST will save approximately 20 cents a litre and for every tank filled, over $11 could be spent on essential family goods and services. This is even more important for families on low incomes and those such as senior citizens on fixed incomes.

“We can no longer afford to watch fuel prices rise and do nothing about it. Air New Zealand rose their prices by 10 percent in the weekend and this only one example of the damage high fuel prices will have on our economy.

“The government must take notice of New Zealand First’s policy to remove GST from petrol. This is the type of tax cut that benefits all New Zealanders and has a positive impact on the wider economy,” concluded Mr Brown.

ENDS

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