As current plans stand, Auckland region will see a 2 cent increase in petrol tax on the 1st of July. This will be followed by further increase which will see the level of tax rise to 9.5 cents per liter by 2011. This is topped also by an increase of 1.5 cents to the national fuel tax every year until 2012.

Transport Minister Stephen Joyce has voiced his concern about the pressure of these rises upon the economy. Although the money from the tax rises has already been earmarked for the electrification of Auckland’s railway system. If the tax were to be cancelled, it could have serious repercussions on the Auckland Regional Council’s plans, especially since budgeting has already been complete and tenders have been invited for the supply of rolling rail stock. According to Labour transport spokesman Darren Hughes, a cut in the regional tax will see the rail electrification as either unfeasible or requiring national borrowing. This is a cause for concern to some as any borrowing will be affect all New Zealanders.

Kineloti Tahaafe committed tax fraud by helping 97 different people claim various tax credits. The fraud would involve forging fake donations to churches and in some cases fake housekeeping expenses. Kineloti Tahaafe would forge fake documents for the people he was helping, he would also assist them in filling out and completing the appropriate forms. Although not always, Kineloti Tahaafe would charge between $50 and $100 for his services.

According to the Inland Revenue Department (IRD), Kineloti Tahaafe has made a total of $256,975 in false claims from the activities he was charged with. Understandably the IRD were adamant in their dissuasion to similar activity or attempts to emulate it in the future.

The tax charged upon anyone in the Auckland region who owns land is set to only increase by two percent this year. The original estimate for the 2009 year was set at 5%. Deputy Mayor David Hay said that by easing this pressure for people, the council is easing pressure on people in this economic climate.

This news must be welcomed warmly by the likes of Reserve Bank Governor Alan Bollard, who has openly voiced his concern in regards to local competition providers like city council and the fees that they impose on people. In 2008 council rates were one of the upward pushing contributors to inflation. Auckland City council charged a 5.7% increase in rates, while inflation was measured at 3.4%.

The new petrol taxes are specifically budget to pay for the electrification of Auckland’s rail network. Any surplus that might present itself will be budgeted for further road construction projects. The proposed taxing scale will see an extra 1c added to each liter of petrol on the 30th of June, 2009. A subsequent rise to 3c is scheduled to occur in the winter of 2009 and lastly a raise to 5c in 2011.

While the new petrol tax is not set in concrete yet, Finance Minister Michael Cullen appears confident in it reaching government approval within the fortnight. He went so far as to say that “The Government sees in effect the current electrification as a lock-down certainty. We are starting to think about the next stage now.” As such, the new petrol tax is as certain as the electrification project.

The new scheme could raise a possible $600 million annually, to be used towards improvement of the public transport system. The new scheme is yet to be approved by the New Zealand Government ministers.