Fuel Tax Alternative Proposed

March 16, 2009 New Zealand Taxation  No comments

It has been revealed that the government is investigating the possibility of buy trains for the Auckland electrification system, in lieu of charging a regional fuel tax.

All indications had it, until last week, that the government was planning on implementing a regional fuel tax on fuel sales in Auckland. The majority of this tax would have been used to finance the electrification of Auckland’s railway system. Last week concerns were voiced about the impact that the regional tax would have on consumers, especially when coupled with the increase in national fuel taxes.

Today indications were made that KiwiRail, which is owned by the Government, would purchase the electric trains required for the system. The purchase of trains by the government is claimed to be able to reduce overheads associated with multiple bodies owning the various trains on the tracks.