For immediate release 29 August 2000

AA CALLS ON GOVERNMENT TO “AXE THE TAX”

The Automobile Association is calling on the Government to ease the costs for motorists by cutting the amount of petrol excise tax it takes for non-roading activities.
“For every litre of petrol sold, 18.7 cents goes into the Crown Account for general expenditure,” the Association’s Director of Public Affairs, George Fairbairn, said today.
“There is a growing sense of public expectation that the Government can and should ease the cost burden on motorists, as well as soften inflationary pressure, by lowering this tax.”
Mr Fairbairn said the Automobile Association had long argued that the non-roading excise tax was distortionary and should be phased out.
“Now would be the perfect time to begin that process. Reducing the tax is the ideal means for the Government to follow through on the Deputy Prime Minister’s concerns about the impact of petrol prices increases.”
He said a reduction in the excise would not impact on the Government’s policy programme, as it had netted an additional windfall benefit through the GST component of increasingly expensive fuel.
“This would compensate for any loss in revenue through a reduction on the excise, and I am certain that such a move would be enthusiastically welcomed across all sectors of the community.
“The Association is getting calls and letters everyday from members who are struggling with these additional costs, which are now impacting on the everyday costs of each household and family.
“We urge all motorists to contact the Ministers of Finance and Economic Development to let them know the depth of public feeling that exists on this issue.”
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For further information:
George Fairbairn Geordie Cassin
Director - Public Affairs Public Affairs Manager
NZAA NZAA
Ph: (04) 470-9984 Ph: (04) 470-9992 (DDI)
Ph: (04) 389-6529 (Home) Ph: (04) 234-8676 (Home)

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