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Auckland drivers to bear the brunt of new fuel tax

Draft legislation for the proposed regional fuel tax was introduced to Parliament late last week, (Land Transport Management (Regional Fuel Tax) Amendment Bill (38-1)) and is expected to be passed in June with an implementation date from 1 July 2018.

Fuel tax image

The purpose of the fuel tax is to establish a mechanism to gather funding for regional transport infrastructure programmes that would otherwise be delayed or not funded.

The fuel tax will:

  • apply to both petrol and diesel (but not CNG or LPG)
  • be collected at the distributor level
  • be used toward the funding of capital expenditure on transport infrastructure programmes
  • have a maximum rate of 10 cents per litre of fuel
  • be subject to GST
  • have a maximum duration of 10 years, subject to renewal
  • apply initially only to the Auckland region
  • be available to other regions from 1 January 2021
  • go to the regional council in the region where the fuel is sold
  • allow for rebates for off-road use.

For more information, you can access the Bill here and review the Bill's progress here.

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