Businesses operating off-road vehicles and equipment are raising concerns around the impact of the Auckland fuel tax.
Horticulture New Zealand chief executive Mike Chapman, who represents 441 fruit and vegetable growers in Auckland, says there is a lot of confusion for businesses who should be exempt from the tax.
“Growers should not have to pay the [regional fuel tax] for vehicles and machinery that are supposed to be excluded from this tax, yet on Sunday they will have to.
“We are talking about considerable numbers of vehicles and machinery used to produce healthy food for New Zealanders, both in Auckland and beyond.
“Having paid this tax that doesn’t apply to off-road use, because there is no exemption process, they will then have to go through a complicated and costly process to get a rebate on that tax.
“This is just not logical. The Government has spent seven figures developing a rebate system without ever talking to future users, or considering that they shouldn’t have to pay the tax in the first place,” Chapman says.
Transport minister Phil Twyford told Radio New Zealand he is working to improve the tax rebate system and was aware of issues raised.
“It’s too narrow, it’s not really fit for the modern world. So Cabinet has asked me to do a review of the rebate scheme both for petrol excise and road user charges – as well as the regional fuel tax,” Twyford told RNZ.
