The government will increase both road user charges (RUC) and petrol excise duty by three cents a litre on July 1 2013, July 1 2014 and July 1 2015.
Transport minister Gerry Brownlee says the increases are required to deliver the ‘roads of national significance’ (RoNS) programme and other roading projects to the timeline set out in the government policy statement on Land Transport funding 2012.
“Excise increases in recent years have helped maintain the real value of the land transport fund,” he says.
“These latest increases will also achieve that, and allow for continuing investment in the government’s state highway building programme and other transport projects.”
The additional revenue to be generated by the increases has allowed the NZTA to confirm funding for several roading projects, including two sections of the Waikato Expressway (story HERE).
“We have considered innovative ways to deliver the RoNS programme, agreeing to the procurement of Wellington’s transmission gully project through a public-private partnership and asking the NZ Transport Agency to investigate tolling the route,” says Brownlee.
“The series of July increases will also ready the Fund for investment in upper North Island transport projects beyond the RoNS programme.”
Amendments to the Customs and Excise Act 1996 and the Road User Charges (Rates) Regulations 2012 will be required to enable the series of increases. New road user charges rates will be published at least six weeks prior to the increase.
“The Government is keen to keep overall costs down for households and business. The cost of living, as measured by consumer inflation, is at a 13-year low and interest rates are at 50-year lows.
“This announcement allows businesses and motorists to plan for the increases,” says Brownlee.
“Any further proposed increases in petrol excise duty and road user charges from 2016 onwards will be considered by Cabinet on a case-by-case basis.”
