The Taxpayers’ Union is correcting David
Seymour’s reported
comments that a temporary cut to fuel tax – as called for by
the Taxpayers’ Union – would necessarily widen the deficit
and result in more borrowing.
“With the greatest
respect to David, the Taxpayers’ Union is not calling for
unfunded tax relief,” said Taxpayers’ Union Executive
Director Jordan Williams.
“What we called for was
scrapping the successor to the wasteful ‘Provincial Growth
Fund’ and for those funds to be redirected into the National
Land Transport Fund. That would deliver temporary tax relief
at the pump without it affecting the deficit, or reducing
investment in transport
infrastructure.”
“Currently, taxes and levies
make up more than 44 percent of the price you pay at the
pump. But the only true tax cut is to reduce spending. The
Regional Infrastructure Fund has proven wasteful with grants
for things such as $10 million to a Bay of Plenty Marae. It
is precisely the sort of low priority spending that should
be scrapped.”
| Tax / Levy Component |
Rate / Calculation |
Amount (cents/litre) |
| GST (Goods and Services Tax) |
15% of total retail price |
39.13 |
| National Land Transport Fund |
Fixed levy |
70.02 |
| ACC Levy |
Fixed levy |
6 |
| Additional Specific Tax |
National weighted average |
2 |
| Petroleum Engine Fuels Monitoring Levy |
Fixed levy |
0.69 |
| Local Authorities Petroleum Tax |
Fixed levy |
0.66 |
| ETS (est) |
Variable | 14 |
| Total Tax per Litre |
132.5 |
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