Petrol Tax Hike on the Horizon

May 20, 2013 New Zealand Taxation

Cost of PetrolPetrol in New Zealand will soon be even more expensive following the passage of a new bill through parliament.

On May 19th parliament passed under urgency new legislation to hike petrol taxes by an extra 3 cents per litre each year over the next three years.

Following the implementation of the raised tax, petrol taxes will hit 59.5 cents per litre by the end of July in 2015.

The bill to raise the tax was passed with 67 votes in favour and 26 votes in opposition.

Prior to the vote the Minister of Transport Gerry Brownlee explained that any extra funds raised from the hiked rate will be used to pay for improvements in the national roading system, and he added that “we have a big programme in front of us that is going to see very significant time savings for a lot of people in the areas where those roads are developed.”

The increase was met with immediate criticism from opposition parties, with the labour Party MP David Cunliffe claiming that increasing the hike only days after the release of the national budget is proof that “this whole Government’s Budget is a complete sham”.

The Green Party also voiced its concern about the tax, saying that the increase should be used to improve public transport and not the road network, as more New Zealanders are now using buses instead of their cars.

Photo by itmpa