Petrol Tax Hike In Effect
July 1, 2013 New Zealand Taxation
New Zealand motorists will feel a hit to their wallet today as the first of three scheduled petrol tax hikes comes in effect today.
From today onwards motorists in New Zealand will be paying 3 cents more for every liter of petrol purchased.
The current tax rise will be followed by an additional 3 percent hike next year, and a further 3 percent increase in the following year.
Currently the total tax component on the purchase of fuel is now at more than 92 cents per liter.
According to the Minister of Transport Gerry Brownlee, the extra funds raised from the increased tax will be used to upgrade the national roading system, which will directly benefit commuters and travelers.
Petrol companies operating in New Zealand have already indicated that the increased tax will not be absorbed, and the cost will be passed onto consumers, as the devaluing New Zealand dollar and the thing profit margin on petrol sales make it unfeasible to reduce profits any lower.
Photo by futureatlas.com