Opposition to scrapping fuel tax subsidy

SOME IN THE TRANSPORT SECTOR ARE UNHAPPY ABOUT RECENT ANNOUNCEMENT THAT THE GOVERNMENT’S TRANSPORT SUPPORT PACKAGE WILL END IN JUNE

We stand by our earlier view that the fuel tax subsidy package should continue until inflation has dropped below 6%,” says Ia Ara Aotearoa Transporting New Zealand acting chief executive Dom Kalasih.

“Since being introduced last year, the fuel tax subsidy has been extended a few times so we’re hoping it will continue.

Each time a fuel tax change does occur, it brings significant administrative burdens associated with purchasing road user charges, and the increased costs need to be passed on. Trucks carry 93% of all freight in New Zealand so costs will hit all consumers and businesses.

“Coming on the back of [recent] revised economists’ forecasts that inflation is likely to be weaker than expected, savings (down by 86.5 per cent on a diesel equivalent). but still between 6.9% to 7.2%, the Minister’s announcement is quite deflating.”

An estimated output of 15 tonnes of carbon has been avoided during the six-month trial period. “Over the course of a year, that’s roughly the same as removing seven passenger cars off the road,” says Baggaley.