Cost of living be damned! Fuel tax hike from July will hit lower income and rural New Zealanders hardest

The Taxpayers’ Union has slammed the Government’s decision to hike fuel taxes from July. The 25 cent reduction in petrol excise (29 cents with GST) and the equivalent reduction in diesel road user charges will be scrapped at the end of June.

Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“Despite all the promises of focussing the cost of living, July’s fuel tax hikes contained in today’s budget will hit Kiwis already struggling with rising inflation. Outside the main cities, most people still rely on their cars to get about on a daily basis. This increase will particularly hit lower income families and New Zealanders living in rural areas – the very people struggling the most with the costs of living.

“If the Government stopped allowing the National Land Transport Fund to subsidize loss-making railway lines, walking and cycle ways, and even the expensive ‘Road to Zero’ advertising campaign, it could maintain fuel taxes at lower levels while still maintaining and investing in our roading network.”