Fuel tax

Hosking: Fuel tax should benefit motorists, not road maggots

Mike Hosking, at the NZ Herald, writes:

Here’s your problem, as has been quite rightly pointed out. Firstly, fuel tax is a new tax – and the Government trying to argue it isn’t is a lie.

Have other governments adjusted the excise? Yes. But that doesn’t make it a reason to do it yourself – especially when you explicitly bent over backwards during the election campaign arguing that there would be no new taxes.

You had a tax working group, and whatever they came up with and got adopted would be taken to the poll of 2020, so we could all vote on it.

That was fair and clear, and made political sense. It’s like arguing income tax is already in place, and because you’re taking the top rate to 39, that’s just an adjustment not a new tax. No one would believe it or accept it. End of quote

The fuel tax is, at the very least, breaking the spirit of a promise. When Labour promised that there wouldn’t be any new taxes voters took it as saying that voters wouldn’t be paying more under Labour.Mike Hosking continues:

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Phil Goff wants 10c a litre fuel tax on top of rates rises

phil goff like len brown zipper up

If you vote for Phil Goff you will be voting for more stupid public transport spending and a new fuel tax to pay for roads we already have paid for.

The true socialist is now showing his hand.

Mayoral candidate Phil Goff warns if Auckland does not start paying a fuel tax, traffic gridlocked on the roads will “steadily get worse” for the next 10 years.

He’s proposing a 10 cents per litre fuel tax for the Auckland region. Mr Goff believes that would create around $120 million a year in extra revenue for the council.

How does “Get fucked Phil” sound?? Read more »

Had the government not slapped retrospective duties onto the oil companies, you and I might be enjoying cheaper petrol now

Don’t you just love politicians.

The price of oil has halved in the last year, but petrol prices are only down about 10 per cent. Why hasn’t the price of petrol fallen more?

Just because the price of oil has halved does not mean the price of refined petrol has, and the New Zealand dollar is substantially weaker now than it was a year ago, offsetting some of the cheaper product price. The operating costs of the companies do not fall in line with the oil price either. On top of that, the margins charged on petrol are climbing.

But the real reason prices cannot halve, under almost any circumstance, is tax. Based on the “national price” of regular petrol, currently $1.959 a litre, about 96 cents of what we pay is tax of one form or another. Worse still, most of it is fixed, meaning as the price of refined petrol falls, it is only the GST component of petrol which also drops. Put another way, in the event that petrol companies were effectively charging nothing for the fuel, motorists would still pay about 77c a litre, mostly in excise and GST. This includes 10c a litre of GST charged on excise tax, meaning motorists are paying a tax on a tax.

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Labour plans to let local bodies tax you even more

Now this has to be an election winning strategy….for National.

Labour is going to let local councils tax ratepayers even more than they do now under their local body proposals.

Labour plans to reinstate the power for local bodies to raise revenue through extra levies such as a ‘pillow tax’ on visitors and regional petrol taxes.

Labour’s Local Government policy will also require a referendum to be held before any local council amalgamations can go ahead.

Local communities would also have to be consulted before council services were contracted out or privatised.

Local Government spokesman Sua William Sio said Labour was not opposed to amalgamations, but did not believe they were appropriate in all cases.

He said the Auckland supercity model was opposed by many Aucklanders “and designed to take control away from the hands of the many and vest governance in the hands of the few.”

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