Increases on Road User Charges for light vehicles and Petrol Excise Duty are set to take place overnight, resulted in increased prices at the pump for Kiwi motorists.
The change is the last of a three-year sequence of announced increases on petrol excise duty and road user charges; the first two updates having been implemented on September 30, 2018, and July 1, 2019.
Light vehicle RUCs are set to increase from $72 per 1000km to $76, and Petrol Excise duty will increase from 66 cents per litre to 70 cents per litre.
As previously reported, that 70 cents will go to the National Land Transport Fund. Also added to the Duty is 6 cents for the ACC Motor Vehicle Account, 0.66c for Local Authorities Fuel Tax and 0.6c for the Engine Fuels Monitoring Levy. Auckland motorists also pay an additional 10c Regional Fuel Tax. GST is also charged on the overall price of the fuel, which already includes the Excise Tax.
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The Government says that a car travelling the national average annual mileage (11,500km), the increases will equate to approximately $35–$40 per year. The Government has also ruled out any further increases for the next three years.
Prior to its change of leadership, former National Party leader Simon Bridges spoke out in May requesting that the government revise the tax increase — citing the impacts of Covid-19 on the New Zealand economy. Bridges also referenced Labour's light rail plans, which have since been confirmed to have been closed after a failure to reach agreement.
"The Government introduced three years of annual tax increases to pay for its beleaguered Auckland light rail pet project that has gone absolutely nowhere since Jacinda Ardern promised it on the 2017 campaign trail," said Bridges back in May.
"New Zealanders understand their petrol taxes pay for roads and public transport," responded Transport Minister Phil Twyford, referencing that a cut to the tax would mean a cut to roading and public transport projects. "They want the government to get on with fixing their neglected roads, easing congestion and building a modern and sustainable transport network."