'Flabbergasted': Road freight lobby criticises fuel excise deferral
The New Zealand road freight industry is criticizing government proposals to delay fuel excise tax increases. Industry leaders argue that failing to adjust the tax for inflation creates a funding shortfall for critical road maintenance and threatens economic development.
Why it matters
Infrastructure funding models tied to flat-rate fuel taxes are becoming unsustainable as inflation rises, impacting national logistics and the cost of living.
The road freight industry says the country will be digging itself a deeper hole if governments continue to put off or cancel increases to fuel excise.
Labour has committed not to increase the fuel excise duty for an entire term, if elected.
The fuel excise duty is due to rise by 12 cents a litre from January, followed by a 6 cents per litre rise in 2028, and 4 cents per litre in subsequent years.
The government's position is that it is "unlikely" the fuel excise duty will be increased in January, with a decision set to be announced soon. National's view is that the increase should be delayed.
The fuel excise duty is set at a flat rate per litre (currently around 70c), meaning as inflation or the cost of petrol rises or falls, the excise duty stays the same.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in