What, ANOTHER Petrol Tax?!

Monday 8 Sep 2003 Deborah Coddington Press Releases -- Transport

ACT New Zealand Transport Spokesman Deborah Coddington today condemned Labour's plan to tax motorists - based on the distance they travel - as just another blatant tax grab.

"Transport Minister Paul Swain has attempted to justify the new tax by claiming that, as vehicles become more fuel efficient, the Government will gain less revenue from petrol tax and, therefore, alternative charges are needed - what a crock," Miss Coddington said.

"Motorists are sick and tired of this Government treating them like a cash-cow. If this new tax ever sees the light of day, it will be the fourth unnecessary increase in petrol levies since Labour came to power.

"This new tax would come on top of the 1 July 2001 Crown Revenue Petroleum Excise Tax increase (from 17.8c/l to 18.5c/l), the 1 March 2002 National Roads Fund petrol tax hike (from 13.525c/l to 17.725c/l), and the 27 June 2003 Injury Prevention, Rehabilitation and Compensation Amendment Act (from 2.3c/l to 5.08c/l).

"Like the previous three increases, this tax hike is completely unnecessary. The elderly and the poor will be the hardest hit by Labour's new tax. Taxi companies will offset costs by passing the tax burden onto customers - predominantly senior citizens on fixed incomes. The poor will be at a disadvantage due to their financial inability to upgrade from their gas guzzling vehicles to something more fuel efficient.

"It will also have a detrimental effect on the New Zealand economy. Business will become less competitive globally as freight costs increase.

"This is an anti-motorist, anti-business tax hike which will hit every New Zealander in the pocket," Miss Coddington said.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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