ACT would reverse five-cent petrol tax

Friday 1 Apr 2005
Rodney Hide
Press Releases -- Transport

ACT Leader Rodney Hide said he is pleased the National Party has finally woken up and adopted ACT's long-held policy of putting all transport excise into better roading infrastructure.

"ACT will not only divert all transport tax to where it should have always gone. ACT would reverse Labour's five-cent petrol tax, giving it back to the drivers who earned it in the first place.

"While Dr Brash is now crying foul, lets not forget that past National governments are as bad as Labour when it comes to siphoning large sums of road taxes into unrelated government spending.

Mr Hide said as from today just under half (48%) of the drivers pay at the pump will be made up of government taxes with only 37% of the tax taken on fuel actually going on roading. A staggering 54% of this tax take is actually being used for general spending with a further 8% going to ACC.

"Labour has not only fooled small business into paying an unnecessary five-cent extra tax on their petrol but road user charges for diesel drivers have gone through the roof today. This will add huge costs to small business.

Sixty-four percent of diesel vehicles on our roads are the two-tonne types. As from today drivers of two-tonne vehicles face a 27% increase in Road User Charges. That means purchasing 20,000 kms will rise from just over $500 to about $640.

"Labour is on the backs and in the pockets of small business. This greedy government is sitting aloft of record high surpluses. Now, it has the cheek to put its hand out for more. It's totally unnecessary. Labour already collects more than enough off drivers."

In the year ended June 2004 petrol excise tax raised $947 million and Road User Charges raised $667 million, totalling $1.6 billion. Best government forecasts predict the 1 April five-cent tax and increases in RUCs will drain another $207 million from driving Kiwis.

"ACT is the only political party serious about cutting taxes and costs for every working New Zealander. ACT is the only party fighting for a better deal for small business," said Mr Hide.

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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