NZ road user charges, petrol excise to rise

BUSINESSDESK: New Zealand's road user charges and petrol excise will rise from August in a vehicle licensing rejig, and will help pay for national transport projects.

The road user charge will rise by 4.1% and petrol excise by two cents per litre from August 1, while at the same time dropping supplementary licences for heavy vehicles, removing the time licence system, changing existing exemptions and cutting the administration fee for a licence, Transport Minister Gerry Brownlee says.

"This increase is effectively a catch-up to ensure there continues to be sufficient revenue available to meet the government’s land transport expenditure targets.

"The funds raised will contribute to the annual $1 billion investment in developing the country’s state highway infrastructure," he says.

The government will reap $1.04 billion from road user charges, $885 million from domestically produced petrol excise and $602 million from imported petrol excise, according to the Treasury's latest forecast.

That is forecast to rise to $1.4 billion in road user charges, $1.04 billion in domestically produced petrol excise and $694 million from imported petrol excise by 2016.

The government plans to spend $6.5 billion on new roads as part of its nationwide infrastructure strategy, having identified seven roads of national importance when it came to power in 2008.

In 2010-11, some 36% of the $2.65 billion National Land Transport Fund was spent on new and improved state highways, 23% on local road construction and maintenance, 18%on maintaining state highways, 10% on policing, 9% on public transport and 4% on other transport activities.

A 1.5 cent per litre hike in petrol excise was set down for July last year but the government delayed that increase because of the slow economic recovery from the global financial crisis and the Canterbury earthquakes.
 


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Dumb move, fuel taxes flow through the whole economy and ping everyone who are already struggling with over priced necessities. You can't have a successful economy when your primary inputs are over priced. Fuel and electricity costs are excessive in NZ. RUC should be incorporated at the pump anyway, what an archaic system. As for transport costs, prod some of the road workers into action and we will save a fortune.

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great, the govt is fast tracking poverty in nz most of us are doing well if we get one pay rise every two years yet our out goings are increasing every month.Its all going to collapse in our life time we cant keep up .

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I agree with Red, White & Blue, but half of the issue is that revenues collected in areas are not spent opn a pro rata basis in those areas. If we dumped RUC's and billed it at the pump you'd save hundreds of thousands of $$$ a year in money wasted on compliance costs to keep RUC's up to date....and govt would lose all that revenue from tickets issued for RUC's that have run over.

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Dumber still given the oil situation and the inevitable obsolescence of road transport coming to greet us at 100 km/h.

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If Govt wants to raise taxes- that's one thing- this another revenue grab- but if that is the plan- lets see some alternatives to driving- offer alternatives-

I feel violated by the taxes that keep on increasing without any feedback from us.

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The increases in fuel tax is a very sensible move. I think it should be higher. It lowers the numbers of vehicles on the roads and lowers the road toll. It means the boy racers can't afford to be as stupid. It ensures our cars and trucks become more fuel efficient. It lowers the wastage of our limited fuel resource. The better roads lower the time to get our goods to market.

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yeah but it also increases the cost of the average Kiwi to get to work every day. IN other words, just like Red, White and Blue said -- it basically hurts anyone and everyone just trying to get by on the basics. You can't get out of debt by taxing people to death, an the divide between the rich and poor wil get even bigger - brilliant

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The dropping of the supplementary licences is a subtle way of increasing all road user licence weight purchases for your truck up to its maximum legal weight, as you will not be able to purchase a supplementary licence for that occassional heavy load.

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For every force applied one direction, there's an equal force applied in the opposite direction. NZ is still haemorrhaging from the price increases that occurred after the Oct 2010 GST increase. NZ'rs have had it up to their eyeballs with tax after tax after tax. All the Govt is doing is encouraging people/business to move to Oz and create an even bigger, hidden market economy that already exists in NZ. Why don't they ever learn?

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Delusionary comments, yet again!

No one likes taxes etc but its not the end of the world, far out you people are a bunch of drama queens!

Someone has to pay for our roads, and it should be the users.

And anyone that thinks Australia is cheaper clearly has never been there. Its a wonderful country, but it isn't cheap!

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Most of the heavy vehicles on NZ roads while are currently running their RUC (weight ticket) on their vehicle higher than is required for a large portion of their usage but under the new legislation all heavy vehicles will be required to run their vehicle at the maximum gross allowed by the manufacturer despite many of these vehicles never loading anywhere near that weight, this in some(many) cases the road user charges will increase up to 150% per annum. These charges will most definitely be passed on to the end user creating even more empty pockets. Granted heavy vehicles need to pay for the damage to the roads but when a 6.5 tonne tare weight vehicle has to run a RUC ticket of 15 tonne at the cost of $570 per 1000kms when they run at 6.5 tonne 50% of the time one has to ask... is THAT fair?

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RUC is a fair system because a lot of engines run on diesel and never touch the road.

In regards to taxes - If you work for the government you don't pay tax.

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Small fuel efficient lightweight diesel cars subsidise the Road Transport Industry though this system. We pay an excessive ACC charge almost double a petrol vehicle and a small diesel cars pays the same tax as a three ton truck. We are helping NZ reduce our dependance on imported fuel by being efficient but the ears closed Government ignores us because the Road Transport lobby funds their election campaigns

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'Two' things in life are certain: Death, Taxes (and TAX HIKES)

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All you complainers should by Hybrid or Electric cars.

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Get rid of the ETS, that'll free up some cash for a real issue, not a manufactured rip-off one like global warming .... I mean climate change .... I mean climate disruption .... I mean a UN wealth redistribution (oops, did I say that, am I allowed to?)

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