John Key - National Party Finance Spokesman

9 February 2005

Cullen keeps petrol tax up his sleeve

National's Finance spokesman, John Key, says Labour is stalling over the introduction of a new petrol tax because it does not want to introduce it before the election.

He is commenting on the Customs and Excise (Motor Spirits) Amendment Bill which has been changed to enable the Government to introduce a 5.6c per litre tax increase at any time it chooses.

"The truth is that Dr Cullen has stalled the introduction of this tax on the myth that he is concerned about oil prices, when he knows he is overtaxing Kiwis and is scared to go to the ballot box after adding yet another tax increase.

"This Government is passing legislation to index its income stream from motor spirits but it has made no adjustment to income tax thresholds paid by hard-working Kiwis at a time when it is running the biggest surplus in our history.

"How can that be fair?

"And Michael Cullen misled the public by conveniently forgetting to tell them when he announced the Auckland roading package in 2003 that he intended indexing petrol.

"If he and Labour care about fixing up our roads maybe they would like to amend the Land Transport Management Act which hasn't seen one private sector funded road built since its introduction," Mr Key says.

ENDS

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