New Hikes to Petrol Taxes

November 16, 2012 New Zealand Taxation

RoadworksMotorists could soon be paying more for petrol or could face delays to major roadworks around the country.

On November 15th One News revealed the contents of a briefing issued to the government by the New Zealand Transport Association, showing that the Association is facing a shortfall in funding for road building projects, and is now suggesting that petrol taxes should be raised by as much as 9 cents per liter over the next three years.

Commenting on the shortfall and the proposal to hike taxes, the spokesperson for the New Zealand Traffic Institute Andy Foster said “…we’re not surprised, in fact we’ve been telling the Government that was likely anyway.”

Mike Noonan, a representative of the Automobile Association, said that the impact on motorists would be reduced if the tax increases were staged over several years and not lumped as a single hike.

The Transport Association conceded that as substitutes for hiking petrol taxes, more funds could be borrowed to cover its NZD 1.7 billion shortfall, or major roadwork could be delayed.

The Minister of Transport Gerry Brownlee responded to the suggestion of delaying some major roadwork, such as the roads of national significance projects, saying that these roads were an election promise from the National Party and will need to be finished.

Photo by thisisbossi