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Auckland to end regional fuel tax

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Sandy Beech

16 June 2024, 11:59 PM

Auckland to end regional fuel taxFuel tax soon in the distance

Aucklanders will soon see relief at the pump as the regional fuel tax is set to end on June 30.

The tax, which added an extra 11.5 cents per litre, was introduced in 2018 to fund transport projects.

Transport Minister Simeon Brown announced the decision back in February, highlighting the financial strain the tax has placed on residents.

“Since 1 July 2018, Aucklanders have faced an additional 11.5 cents per litre tax on fuel, over and above what the rest of the country pays, increasing the cost of living at a time when they can least afford it. Ending this tax is one way to reduce the price of fuel and ease some of the financial pressure facing households in our largest city.”

Brown noted that removing the tax means the driver of a Toyota Hilux will save approximately $9.20 per fill-up, while a Toyota Corolla driver will save around $5.75.

“Fuel tax is becoming an increasingly regressive form of taxation and costs people on lower incomes with less fuel-efficient vehicles more than those who have newer more fuel-efficient vehicles. We intend to fully remove the legislative framework for regional fuel taxes,” he added.

Since its implementation, the regional fuel tax has generated around $780 million, with approximately $341 million still unspent.

The remaining funds, which amount to more than two years’ worth of revenue, have been a point of contention among Aucklanders.

The decision to end the tax addresses public concerns about rising living costs.

However, there are criticisms regarding the potential impact on future transport funding.

While supporters believe the tax cut will provide much-needed economic relief, detractors worry about the long-term implications for Auckland's transport infrastructure.

As the end date approaches, Coasties can prepare for the financial reprieve, weighing the immediate benefits against the potential future costs to the city's transportation projects.