Govt defers July fuel tax increase
The planned fuel tax increase of 1.5 cents per litre, due to come into effect on July 1, has been deferred while economic conditions remain tight.
The planned fuel tax increase of 1.5 cents per litre, due to come into effect on July 1, has been deferred while economic conditions remain tight, Transport Minister Steven Joyce has announced.
The increase was part of a package of changes agreed to by the government in March 2009, designed to make the funding of New Zealand’s land transport system simpler and more efficient. The package included the cancellation of the economically inefficient regional fuel taxes and their replacement with smaller national increases.
Mr Joyce said given the ongoing economic impact of the global recession and the Christchurch earthquakes, it makes sense to hold off on the increase for another year so as not to add further costs to the economy.
He said the government’s $11 billion roading programme would not be significantly affected over the ten year plan for the programme.
"In fact, ongoing investment in transport infrastructure and services, which is a key economic driver, has never been higher," he said.
Officials are currently working on the next Government Policy Statement for Land Transport Funding (GPS), which sets out the government’s transport priorities and how they will be funded. The 2012/13 – 2021/22 GPS will include support necessary to repair Canterbury’s transport infrastructure.
NBR staff
Tue, 26 Apr 2011
Tue, 26 Apr 2011
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Govt defers July fuel tax increase
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