Govt Should Delay Road Tax Increase Due To Economic Crisis

Published: Mon 25 May 2020 11:19 AM
“The Government should delay an increase in road user charges scheduled for 1 July this year,” according to ACT Leader David Seymour.
“This tax increase will affect tradies, truckies, courier drivers, delivery vehicles – basically any business that uses a diesel-powered vehicle. The impact will be felt through the cost structure of nearly everything consumers buy. At a time of economic crisis when the Government is hosing money all over the place and heavily indebting the next generation, gouging road users is nuts.
“The Government should approach the COVID-19 crisis with a simple maxim from the Hippocratic Oath: First, do no harm. Before spending money to stimulate the economy, the Government should ask, can it take less in the first place? Before giving money to prop up failing businesses, it should ask, can it stop hurting businesses in the first place?
Road user charges are scheduled to increase for all categories of vehicle by about 5 per cent. That increase is double CPI inflation, currently listed by the Reserve Bank at 2.5 per cent.
“These increases follow steadily rising government revenues. In 2019, the government took $1.673 billion in RUCs, up 7.9 per cent from $1.551 billion in 2018 [p. 63].
“This increase is occurring in the context of COVID-19 and a $140 billion borrowing program. It’s extraordinary that the Government is prepared to gouge businesses that rely on diesel vehicles on the one hand, while professing to want to create jobs at the same time.
“The Government should bring legislation to the House to reverse the road user charges increase this July. It is a simple, easy fix that would give relief to businesspeople up and down the country.”

Next in New Zealand politics

On Whether This Election Is Already A Foregone Conclusion
By: Gordon Campbell
Newshub-Reid Research Poll Shows National Rising But Labour Still Governing Alone
By: Mediaworks
SFO Files Charges In Relation To NZ First Foundation Donations
By: Serious Fraud Office
Business Leaders’ Confidence Tanks As Top Kiwi CEOs Vent Their Frustrations
By: New Zealand Media and Entertainment
Taking Action To Reduce Waste And Plastics
By: New Zealand Labour Party
On Last Night’s Leaders Debate
By: Gordon Campbell
Dunne Speaks: The Election Campaign Just Grinds Slowly On And On
By: Peter Dunne
Electoral Commission: Candidate And Party Lists Released
By: Electoral Commission
National Releases Its Plan To Restore NZ’s Prosperity
By: New Zealand National Party
The 2020 New Zealand Election Is Not A Foregone Conclusion.
By: Keith Rankin
Overseas Voting Starts On Wednesday
By: Electoral Commission
Politicians To Go Head To Head On Education Issues In Election Debate
By: NZEI Te Riu Roa
New Zealand First Fully Exonerated Of All SFO Charges
By: New Zealand First Party
Links to two judgments in the SFO's NZ First Foundation case
By: New Zealand High Court
Green Party Responds To NZ First Foundation SFO Charges
By: Green Party
View as: DESKTOP | MOBILE © Scoop Media