The transport sector says it’s “unhappy” the Government won’t be extending the fuel tax subsidy beyond the June deadline.
Speaking on NewstalkZB last week, finance minister Grant Robertson confirmed that the transport support package will come to an end on June 30.
The Government introduced the temporary relief measures in March last year, cutting fuel tax by 25 cents a litre plus an equivalent cut in road user charges (RUCs) to help ease the soaring costs at the pump.
The subsidy was extended several times and followed calls from road freight body Transporting NZ to have the scheme continue until inflation was below 6%.
However, latest figures from Stats NZ shows inflation is at 6.7% for the 12 months to March. This is down from the previous 7.2% figure but still at levels not seen since the 90s.
Transporting NZ acting chief executive Dom Kalasih says the industry is standing by its view that the fuel tax subsidy package should continue until inflation has dropped below 6%.
Hearing Robertson call an end to the scheme “is quite deflating’’, he says.
“Since being introduced last year, the fuel tax subsidy has been extended a few times so we’re hoping it will continue.
“Each time a fuel tax change does occur, it brings significant administrative burdens associated with purchasing road user charges, and the increased costs need to be passed on. Trucks carry 93% of all freight in New Zealand so costs will hit all consumers and businesses,” Kalasih says.
