2 March 2005
Taxes when applied must treat everyone equally
The Automobile Association is questioning why all vehicles and road users are not bearing equally the increased tax
announced by the government. The 5 cents per litre (plus GST) increase is added to the excise on petrol, however the
equivalent Road User Charges increase will only apply to light vehicles using diesel, and not to heavy vehicles.
Heavy vehicles use the roads equally with all other vehicles, and will also benefit significantly from greater roading
investment. Therefore this increase must apply to all vehicles. They also have a far greater impact on the road surface
than ordinary family cars.
Yet the Government’s proposed increase is directed primarily at motorists. Surely all road users should pay their equal
share of this increase,” AA Public Affairs Director, George Fairbairn said.
Mr Fairbairn said that every sector of the economy will benefit from a safer and improved roading network – and that
included business and industry.
“While it is inevitable that any increases faced by heavy vehicles will be passed on to their customers for many goods
moved by truck, consumers have a choice as to whether or not to buy. Most consumers have little choice in whether to use
their cars or not, and for the least affluent an unnecessary increase of 5 cents per litre is going to be painful” he
said.
ENDS