The Taxpayers’ Union is calling on the Government to cancel its proposed increases to diesel road-user charges and petrol excise taxes over the next few months following today’s announcement that inflation remains stubbornly high at 7.2%.

Taxpayers’ Union Campaigns Manager, Callum Purves, says:

“Things could soon be about to get worse as the Government is intent on increasing road-user charges and petrol excise taxes starting over the next few months, which will increase diesel and petrol prices at the pump. Inflation may have flatlined in the last quarter, but these price rises will dash any hopes of a reprieve for Kiwi families.

“The Government claims that it is subsidising road users, but this is not the case. The National Land Transport Fund – which is funded by user charges and excise taxes – subsidises loss-making railway lines and even the ‘Road to Zero’ advertising campaign. If the Fund stopped paying for non-road projects, the Government could keep charges and taxes down while still investing in road improvements.

“The incoming Prime Minister has said that he wants to focus on the ‘bread and butter’ issues and is concerned about the cost of living. It’s time the rubber hit the road.”

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