Fuel tax increase will hit poorest and rural communities the hardest

Commenting on Labour’s transport announcement, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“Fuel taxes hit the poorest and rural communities the hardest who rely on their cars to travel and get to work. The announcement that fuel taxes would rise a further 12 cents under the Government’s plans will be a further slap in the face to New Zealanders who are already struggling with the cost of living.

“Despite tough talk on supporting those on low incomes, the Government has already put fuel taxes back up to a level where about half of the cost of filling up is paid in tax.

“Fuel taxes are justified to road users on the grounds that they fund road maintenance, but they are already being used as a slush fund to cover the costs of public transport and cycleway investment. Today’s announcement suggests that motorists are going to continue to be used as cash cows to subsidize non-road projects.

“The Government could fund significant levels of investment without increasing fuel taxes if it simply reverted the National Land Transport Fund back to what it was designed for – funding road maintenance and upgrades - or other user-pays forms of funding."