Government Needs to Halt Oil Subsidies

June 11, 2013 New Zealand Taxation

ExplorationThe Green party has come forward to say that the New Zealand government should stop supporting oil exploration and should instead support sustainable energy sources.

Late last week the Green Party released a new statement, claiming that the government should stop providing tax subsides to companies operating in the country’s oil and petroleum sectors.

According to the Green Party, the oil and gas industry in New Zealand receives approximately NZD 46.29 million in tax subsidies every year.

The majority of the tax breaks are granted to overseas companies involved in oil exploration activities around New Zealand.

The Green Party says that “…the fossil fuel industry is contributing to runaway climate change, and yet the National Government is transferring public money to facilitate more fossil fuel extraction.”

the party also claims that the subsidies are distorting investment decisions in favour of extracting more oil, while money should actually be spent on more sustainable energy sources in an effort to address the global problem of climate change.
Photo by Adventures of KM&G-Morris