Petrol Tax To Rise Again

August 31, 2012 New Zealand Taxation

petrol pricesRoad user charges and taxes on petrol are set to go up, as the government looks to finance the development and improvement of the country’s road system.

The fuel excise duties and road-user charges faced by New Zealanders will be raised even further within the next 12 months in order to raise more funds to finance transport projects around the country, according to a statement made on August 30th by the Prime Minister John Key.

The government has not yet finalized the size of the increase, and a decision should be made by the end of the year.

Commenting on the potential size of the tax rise, the Transport Minister Gerry Brownlee indicated that the tax hike will be “in the realms of the rate of inflation”.

The extra tax revenues gathered from the increase will be used to fund improvements of the transport network in the Auckland region, to build and repair roads in the earthquake damaged areas of Canterbury, and to fund the government’s long debated “roads of national significance”.

In order to cover any short-term shortfalls in funding for the development of the roads, the New Zealand Transport Agency has been granted the authority to borrow NZD 100 million.

Earlier this month, the excise duties on petrol were raised by NZD 0.02 per litre.

Photo by Judy **