Motorists need not pay more for ACC Fuel Levy

Federated Farmers of New Zealand (Inc) is calling on the Government to offset the proposed 3 cent increase to the ACC fuel levy by reducing the fuel tax it siphons off motorists.

The ACC Minister has announced that the ACC Fuel levy would increase from 2.03 to 5.08 cents per litre on 1 July next year.

"Currently motorists are overtaxed on fuel by almost 20 cents per litre, putting around $600 million into the Government coffers, said Mr Pedersen.

"Rather than adding a further impost of $100 million on motorists, the government should reduce the amount it is siphoning of to $500 million.

"The government can't hang its hat on the old excuse that it needs fuel excise to pay for the cost of road accidents as the ACC motor vehicle account covers these costs. The latest excuse that health and education would suffer also doesn't withstand scrutiny.

"New Zealanders expect to pay for health and education transparently through their taxes not by stealth. The increase in tax revenue due to growth driven by the agricultural sector is more than enough to meet society's demands without diverting a further $ 100 million which would otherwise drive future growth."

© Scoop Media