Seymour dead wrong to say fuel tax relief would increase borrowing - so long as Govt cuts wasteful spending

The Taxpayers' Union is correcting David Seymour's reported comments that a temporary cut to fuel tax - as called for by the Taxpayers' Union - would necessarily widen the deficit and result in more borrowing.

"With the greatest respect to David, the Taxpayers' Union is not calling for unfunded tax relief," said Taxpayers' Union Executive Director Jordan Williams.

"What we called for was scrapping the successor to the wasteful 'Provincial Growth Fund' and for those funds to be redirected into the National Land Transport Fund. That would deliver temporary tax relief at the pump without it affecting the deficit, or reducing investment in transport infrastructure.”

“Currently, taxes and levies make up more than 44 percent of the price you pay at the pump. But the only true tax cut is to reduce spending. The Regional Infrastructure Fund has proven wasteful with grants for things such as $10 million to a Bay of Plenty Marae. It is precisely the sort of low priority spending that should be scrapped."