Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Another Tax Increase For Motorists

28 June 2005
PR 099/05

Another Tax Increase For Motorists

Farmers and other road users are facing another tax hike on fuel – the fifth announced this year.

On July 1 the ACC levy on petrol rises by just under one cent per litre.

It comes on top of the five cents a litre increase that took effect at the end of March and three future tax increases in the pipeline:

- A carbon tax, which will increase petrol and diesel prices by up to 4.6 cents a litre from 2007;

- A higher petroleum fuels monitoring levy, which will increase petrol and diesel prices by one cent a litre; and

- An annual inflation adjustment to petrol excise tax dedicated to roads, to start in April next year.

"The ACC increase will take the total tax on petrol to 53.6 cents a litre. On the same day, the registration cost for diesel powered cars will increase by about $9 to around $223 a year," said Charlie Pedersen, Vice President of Federated Farmers of New Zealand.

"Although ACC has sought to justify its levy increase on the basis of covering increased costs from motor vehicle accidents, it and other tax increases are nevertheless more government-imposed costs that will be passed onto the consumer. Higher petrol prices mean increased downstream prices for goods and services.

"The increases are another drag on the international competitiveness of agriculture and first-stage processing.

"Federated Farmers welcomes increased funding for roading and the government’s recent announcement to spend an unexpected $500 million company tax windfall on roads. But motorists remain cynical about a government policy that siphons off 18 cents a litre of petrol taxes for the consolidated fund.

"That equates to $600 million a year sucked in to the consolidated fund for spending on non-roading purposes.

“High and growing taxes discourage innovation, productivity, saving and investment – all things the government says it wants more of. It’s time for some fresh thinking on tax,” said Mr Pedersen.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news