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Political Courage Would Have Left Fuel Taxes Untouched, Say Sector Bosses
The new plan shifts the first increase to 2028 and adds smaller, more frequent hikes after ministers said fuel taxes have lost 20% of their real value.
- On Monday, Prime Minister Christopher Luxon and Transport Minister Chris Bishop announced the Government cancelled the 12c per litre fuel excise increase scheduled for January 1, 2027, replacing it with a phased schedule starting January 1, 2028.
- Luxon stated the delay provides New Zealanders 'more time to recover' from post-Covid economic pain, while Bishop previously warned fuel taxes lost 20% of their real value since 2020, pressuring transport funding.
- Finance Minister Nicola Willis noted the Government will cover the $1.5 billion revenue shortfall using its $450 million fuel crisis rainy day fund, with additional funding sources yet to be specified.
- Labour leader Chris Hipkins committed to freezing fuel taxes for three years if elected, but Willis criticized the plan, claiming it would create a $4.6bn shortfall requiring 'significant' cuts to infrastructure.
- The new schedule begins with a five-cent increase on January 1, 2028, followed by six-month increments totalling 20c by end-2029, then annual five-cent hikes resuming from January 1, 2030.
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13 Articles
13 Articles
A race to the bottom? The government delays fuel tax increase, Labour promises to freeze it
The government has cancelled a planned 12c per litre fuel excise increase due in January. Labour has promised no fuel tax increases for a full three-year term. National and Labour are now accusing each other of leaving a hole in the transport budget.
·Auckland, New Zealand
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National and Labour's fuel tax squabble puts NZ on a road to nowhere fast
Comment: For the better part of a decade, politicians have sold the public the fiction that we can build things without paying for them The post National and Labour’s fuel tax squabble puts NZ on a road to nowhere fast appeared first on Newsroom.
·Auckland, New Zealand
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New Zealand gov't cancels 2027 fuel tax hike
·Beijing, China
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Coverage Details
Total News Sources13
Leaning Left5Leaning Right2Center2Last UpdatedBias Distribution56% Left
Bias Distribution
- 56% of the sources lean Left
56% Left
L 56%
C 22%
R 22%
Factuality
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