The transport sector is unhappy about Finance Minister Grant Robertson’s announcement last week that the Government’s transport support package will end in June.

‘’We stand by our earlier view that the fuel tax subsidy package should continue until inflation has dropped below 6%," says Ia Ara Aotearoa Transporting New Zealand acting chief executive Dom Kalasih.

"Since being introduced last year, the fuel tax subsidy has been extended a few times so we’re hoping it will continue.

Each time a fuel tax change does occur, it brings significant administrative burdens associated with purchasing road user charges, and the increased costs need to be passed on. Trucks carry 93% of all freight in New Zealand so costs will hit all consumers and businesses.

"Coming on the back of this weeks revised economists’ forecasts that inflation is likely to be weaker than expected, but still between 6.9% to 7.2%, the Minister’s announcement is quite deflating."

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