Auckland petrol tax will be in place by mid-next year

Minister of Transport Phil Twyford is hoping to have the fuel tax in place by July 1 next year.

Aucklanders will be paying a 10c a litre fuel tax by July 1 next year, according to the Minister of Transport.

A spokesman for Phil Twyford says the government is hoping to have the levy working by then, in part because it’s close to the beginning of the new financial year.

Auckland mayor Phil Goff will outline his proposals for the council’s 10-year budget next Thursday – it’s likely more details of the fuel tax will be addressed then.

Auckland Council has requested the revenue from the tax be used to help fund the city’s infrastructure.

Mr Goff says light rail to the airport will cost roughly $2.5-2.8 billion and to the west will cost roughly $300 million more than the alternative cost of a busway.

“With the regional fuel tax, the council can contribute – over a 10 year period – between $1.2-1.45 billion to the light rail projects.”

The Automobile Association's principal adviser for infrastructure, Barney Irvine, says the organisation was comfortable with the proposal when it was proposed by Labour.

“We don’t have any principled opposition to it and we think it should be considered one of the tools Auckland needs to bridge the funding gap.”

The AA says it is a good time to be implementing the tax as petrol prices in Auckland are lower than most places in New Zealand.

“[There is] a lower range of prices across the Auckland market – sometimes prices vary by 10, 20, 30c per litre depending where you are,” AA petrol prices spokesman Mark Stockdale says.


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33 Comments & Questions

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That's the easy one Phil. But how many houses will you have built? LOL!!

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Not sure who the AA commentator is - but even a blind man would know fuel prices have been rising since the election, without adding in more tax.

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Dark clouds are starting to form on the economic horizon and the wind direction is blowing this way. Look over there and you will see them. It would be nice to think that both the Labour Government and the Labour Council can see these as well, but I know they won't, not can't, but won't, too busy spending like starving kids with a $10 note in a lolly shop are they. This is their time they'll be saying with much back-slapping and shouts of excitement and glee. There are plenty more $10 notes from where that one came from. It's life on easy street from now on..........

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It gets worse. Attended a council sponsored 'Conversation' about zero deaths (Vision Zero) on our roads last week. The guest speaker was talking about roads for use by all traffic, and the council reps kept getting excited about pedestrians and cyclists and missed the point completely. Regardless they are deliberating going off on a tangent and spending a 100 million or so on what they thought they heard, not what they heard. So it's no wonder there's no money when Council continually heads off on wasteful tangents.

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Can I assume that, because the interim transport levy was an interim measure until a petrol tax was in place, this means that the ITL will not be charged from 1 July next year then?

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So, how is this not a new tax. So Mr Twitford, why have the Labour party decided to implement new taxes when you campaigned on no new taxes......

Did you campaign truthfully or do you have a mouth full of lie ulcers in your mouth?

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Labour is all about taxation, always has been. Trouble is this time round Labour didn't think for one second they would actually get in power so are now panicking about where all the money will come from to fulfil their fanciful election promises. Anyone who rubbished Joyce when he said there was an 11 billion hole should be paying real attention now, as I believe it will be even bigger when the borrowing starts.

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The working class gets shafted by paying far more in Petrol also Labour devalues our Auckland family homes at the same time.

Most people that own homes are working class!

As I see it Labour supports people that don't go to work ie the Rich and the unemployed.

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Yeah and think about all those single working people of all ages and those working couples and families without dependent children in Auckland. Shafted twice by Labour. Once with a tax increase on their wages from the 1 April 2018, and then once again with a tax increase on their petrol. Most of these individuals are going to be $1200 a year each worse off so Labour can send rich kids to Medical, Dental, Business and Law school for free, and pay tens of millions to maybe, just maybe mind, re-enter the Pike River Mine to collect the remains of a few dead people. Yes, it's time somebody actually stood up and said it!

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Not for much longer Ken....

The country seemed to want a change and a change is a comin' the only issue is how red the red shall turn blue at the end of the day.

Look it was a last hoorah for Winnie and normal service shall be resumed soon.

Anyone now where the Auckland boundaries will be and will it be like moonshining out of townies selling cheap gas in PaknSave....

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If the dollar goes to 60,the price of fuel will sky rocket, that will hurt many people, the government then will have to offer incentives for people to get into elektrek vehicles.

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Rich people will buy electric cars. Meaning only poor people will be forced to pay the petrol tax.

And I bet that no modeling has been done on how much increased electric car numbers will reduce the amount of revenue that will be raised by the tax going forwards.

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I'm sure their inventive minds will find a way of taxing electric cars

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Gary. Maybe you should have learned to spell before coming to my country

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Greg - a massive assumption on your part, and one which suggestively reveals your underlying attitudes perhaps? He might just as easily been a casualty of NZ's education process ( I hesitate to use the word system since it suggests something rather better organised than the reality). I've interviewed NZ university graduates and asked for writing samples - and wondered what they actually did to get such good grades! Sad!

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Well that's the first of many to come, I suspect.

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The traditional Labour supporters who work for a living may think twice about giving this party their support, the word labour itself denotes graft , this coalitions seems to be focus on rewarding those who do anything but

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The idiot minister should be tarred and feathered

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A great move. Auckland needs the infrastructure in a hurry

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Are electric vehicles going to be tax too?

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Electric vehicles are subject to road user charges -- but they're currently exempt until EVs make up 2% of NZ's total road fleet (which is projected to be around 2020).

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Wonder how much the road charges will be,I hope its not like the diesel rort.

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Come on, you know it will be. The govt needs to tax you as much as they can, to pay for all their social spending.

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But but but..................... what about the poverty all those poor children whose parents now have to decide whether to fill the tank or put food on the table. Where's the Minister of Poverty in all this. Does she have no shame condemning these poor children to even more poverty.

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Maybe if those parents decided to have a few less kids in their enormous families, they might not need any financial help for their "poverdy".

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Maybe if those lazy pensioners got a job we wouldn't have to confiscate younger folks' earnings to pay for their lattes, reducing over 50% of NZ's welfare state bill!

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It won't be an issue as they will all starve to death because the price of food (along with all goods that are transported), will skyrocket.

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Labour's supporters will be directly hit by this petrol tax as others have pointed out. How dumb is the excitable Mr Twyford? And if the Auckland Council managed their budget, no petrol tax would be needed. That is not possible, of course, because Mr Goff is the Mayor - another financially illiterate Labour politician.

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Yet more proof that Labour long ago abandoned the working class. This will punish those who work multiple jobs across the city to make ends meet while rewarding already well paid middle/upper class workers who work in the city and commute from the inner suburbs.

Oh, and light rail? You'd have to be a grade-A moron to support it. If we're going to have rail to the airport, let's do it properly and have real rail. Not some slow useless half-assed pretence at a rail service.

If it ends up less than 200% over budget I will be amazed. If it gets even 50% of the rider figures used to promote it on days outside of special events then I will be even more amazed.

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Agree. This should be done via higher rates for those who receive betterment value from the city, and/or land tax reflecting the same. This is pandering to wealthy inner city NIMBYs.

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Excuse me - and aside from the East West motorway, what exactly was Nationals plan to sort out the traffic chaos in Auckland?

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Ask Goff how much interest is Auckland now paying compared to 12 months ago

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Given that the money is for infrastructure shouldn't the Council be putting a levy on Trucking companies? Some of them are making record profits, surely they can afford to put up their fair share when they are using the roads purely for economic gain vs commuters who need to eg drop their kids to school.

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