Fuel Efficient Cars Cause Tax Hike
July 2, 2014 New Zealand Taxation
Fuel efficient cars are one of the reasons behind the government’s recent hike to petrol taxes.
In a statement made on June 30th the Prime Minister John Key indicated that improvements in the fuel efficiency of cars has led to the government raising the taxes applicable to the sale of petrol in New Zealand.
According to the Prime Minister, while tax rates applicable to the sale of petrol have been rising in recent years, the total tax revenues collected from the sale of petrol has been falling, as newer and more efficient cars require less fuel to operate.
The impact of the falling tax revenues is made even more sever by the fact that the government’s demand for the funds is growing larger, due to its ongoing roading projects and infrastructure improvements.
John Key conceded that the tax rises would make a noticeable impact on the financial situation of drivers, but indicated that the extra funds will ultimately result in better, with less traffic concerns and improved safety.