Fuel tax increase canned

Some good news for tough times:

The planned fuel tax increase of 1.5 cents per litre which was due to come into effect on 1 July has been deferred while economic conditions remain tight, says Transport Minister Steven Joyce.

The increase was part of a package of changes agreed to by the government in March 2009, designed to make the funding of New Zealand’s land transport system simpler and more efficient.  The package included the cancellation of the economically inefficient regional fuel taxes and their replacement with smaller national increases.

Mr Joyce says given the ongoing economic impact of the global recession and the Christchurch earthquakes, it makes sense to hold off on the increase for another year so as not to add further costs to the economy.

This is a temporary reprieve but we can be grateful for small mercies when we get them.

2 Responses to Fuel tax increase canned

  1. bulaman says:

    If we dumped the ETS we could have a drop of that plus GST right now! On top of that the carbon cops would be off the books and all the other climate parasites sucking from the public purse..Several hundred million more saved!

  2. Andrei says:

    Fuel tax increase canned

    No only deferred

    Mr Joyce says given the ongoing economic impact of the global recession and the Christchurch earthquakes, it makes sense to hold off on the increase for another year so as not to add further costs to the economy.

    Still a good move, never-the-less

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