EMA Strongly Opposes Increase in Interim Transport Levy

11 May, 2016

EMA Strongly Opposes Increase in Interim Transport Levy

In a strongly worded letter to each of Auckland City’s Councillors and Mayor, the EMA has urged the council to not vote for imposing more costs on the business community via the proposed Interim Transport Levy.

Included in the Annual Plan, which is scheduled to be approved on Friday, May 13th, the proposed change to the transport levy could see some businesses face a tax increase of tens of thousands of dollars.

In the letter, EMA’s CEO, Kim Campbell stated: “I am writing to remind you of EMA’s opposition to the proposed changes, the potential damage they will create in the Council/business relationship if approved and the likely resistance their approval will create in the business community to any future council-proposed funding initiatives.”

He went on to highlight, that the business community was already contributing, as it had reluctantly given its support to the temporary three year levy to raise the $180 million to fund much needed transport initiatives in Auckland.

“But business cannot accept the petty politics that have brought the redistribution of the levy back onto council’s budget agenda after just 12 months of the three year levy.

“Business relies on certainty from its regulators and local authorities. All business is seeing in Auckland at the moment is inconsistency from Council and that will translate to lack of support from business for council in the future,” says Mr Campbell.

Currently the levy sits at $187 per business per annum and $114 per residence. The proposed amendment is to either levy business at $407 or at a rate based capital value while reducing the residential levy by a token amount to $90 (see table).

EMA stated in its submission, that business would not benefit more from transport initiatives the levy was funding and therefore should not be asked to contribute more. In the main, funding from the temporary levy was being allocated to public transport, cycling and walking projects which benefit residents.

“Around 85% of business traffic uses the motorway network and main arterial roads that are already funded through central Government taxes and road user charges. Our members are already paying their share.

“I urge the Mayor and Councillors to think wisely on this matter, before changing the rules to impose more costs on our members just 12 months after implementing the levy,” says Mr Campbell.

ENDS

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