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· February 01, 2023 12:54 PM
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Taxpayers’ Union welcomes decision to extend fuel tax cut
The Taxpayers’ Union – which has been campaigning for an extension to the diesel road-user charges and petrol excise reductions – has welcomed the Government’s announcement today that the fuel tax cuts will continue until 30 June.
They have, however, called on the Government to stop using the National Land Transport Fund (NLTF) to fund non-road programmes so fuel taxes can be kept down in the future while continuing to invest in and maintain our roads.
Taxpayers’ Union Campaigns Manager, Callum Purves, said:
“Today’s announcement will come as a welcome reprieve to families and businesses who were facing steep price increases at the pump in addition to all the other inflationary pressures driving up the cost of living.
“Opponents of the fuel tax reduction argue that those who use our roads should pay for their maintenance and improvement. We agree. But the reality is that road users are subsiding public transport services, walking and cycling routes, loss-making rail services, and advertising campaigns through the NLTF.
“The Government should return the NLTF to its original purpose – paying for our roads. If it wishes to continue to fund these other programmes, it should do so by finding savings elsewhere rather than force road users to pick up the tab. This would allow for fuel taxes to be kept lower than they were before the cut, increased investment in our roads or some combination of the two.”
In the last government financial year to 30 June 2022 (including 3.5 months of the fuel tax cut), the breakdown of income to the National Land Transport Fund was as follows:
- Road user charges: $1,904m
- Fuel excise duties: $1,783m
- Vehicle regulation / licensing: $235m
- Track user charges from KiwiRail: $7m
- Road user charges – Gov funding to replace lost income due to fuel tax cut: $186m
- Fuel excise duties – Gov funding to replace lost income due to fuel tax cut: $189m
While the spending from the fund was as follows:
- State highway improvements: $1,010m
- State highway maintenance: $796m
- Local road improvements: $105m
- Local road maintenance: $720m
- Investment management: $60m
- Road policing programme: $394m
- Public transport services: $429m
- Public transport infrastructure: $304m
- Walking and cycling improvements: $104m
- Road to zero: $285m
- Rail network investment programme: $287m
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Not Saying
· May 16, 2014 12:00 PM
Yesterday we were scathing of Mr English's lack of tax cuts in yesterday's budget.
Nevertheless, we were eager to qualify for the only tax cut that was it - the removal of cheque duty - worth about $1 a year per New Zealander.
To avoid missing out on the tax cut, earlier today we delivered a cheque to The Treasury to cover the lunch provided at yesterday’s budget lock-up.
Rather than pay for our taxpayer funded lunch with cash, we dusted off our cheque book to make the payment. As only the minority of New Zealanders who still use cheques will qualify for the tax relief, we wanted to make sure we are among them.
Yesterday’s budget forecasts that over the next four years, total surpluses will equal $4,935 per household. Of that, Kiwi taxpayers get back $1 from the only tax cut contained in yesterday's budget.
We’re calling on the Government to lay out a clear and meaningful program of reducing tax and compliance costs.
The Taxpayers’ Union fights for lower taxes and value for money from every tax dollar. New Zealanders are welcome to donate their tax cut by clicking here (or of course sending a cheque!).