New Petrol Tax Likely

October 2, 2008 New Zealand Taxation  No comments

New petrol taxes are likely to be approved within the next two weeks according to Finance Minister Michael Cullen.

The new petrol taxes are specifically budget to pay for the electrification of Auckland’s rail network. Any surplus that might present itself will be budgeted for further road construction projects. The proposed taxing scale will see an extra 1c added to each liter of petrol on the 30th of June, 2009. A subsequent rise to 3c is scheduled to occur in the winter of 2009 and lastly a raise to 5c in 2011.

While the new petrol tax is not set in concrete yet, Finance Minister Michael Cullen appears confident in it reaching government approval within the fortnight. He went so far as to say that “The Government sees in effect the current electrification as a lock-down certainty. We are starting to think about the next stage now.” As such, the new petrol tax is as certain as the electrification project.