Wider repercussions of fuel tax
Phil Goff’s fuel tax will mean Auckland residents will have to pay at the pump, as well as in rates and on goods and services.
The first to be stung by the mayor’s 10 cent per litre tax for busways and light rail, will be those at the pump. But wider repercussions will see the tax costs of companies and organisations passed onto residents as well.
Businesses have indicated passing it onto consumers.
Ratepayers will be stung further costs with Auckland Council confirming it too will pay the tax.
If the fuel tax was in effect in the 2016/17 financial year, the council and its controlled organisations would have spent an extra $239,650.39 running vehicles and operations, not including the raft of other contractors tasked with super-city maintenance. It is unknown how the tax will affect public transport costs.
The council may also see a drop in Ports of Auckland profits. The port used 2,802,525 litres of diesel in the last financial year, meaning a $280,252.50 hit if the tax was in effect.
Partly council owned Auckland Airport, and governmentowned KiwiRail, are both waiting to see details on the tax and what it will mean for their operations. KiwiRail couldn’t confirm if it was looking for a diesel distributor outside the borders of Auckland, or if the added costs would be targeted at Aucklanders or users nationally.
‘‘Once the details become clearer we will then analyse what the impact on our business will be,’’ a spokesman said.
On top of an increase to goods and services, and the added whack to GST, Rodney residents may get clouted again. Its local board is investigating a targeted transport rate of up to $200 for road sealing, a trial train service and park and ride stations.
Petrol companies are also waiting for further information to see what effects the tax will bring, where the tax borders will be, how it is collected, and if industries such as farming will be given a rebate. The Ministry of Transport couldn’t answer questions surrounding the tax, directing them to Transport Minister Phil Twyford’s office. Clint Brown, Senior Communications Strategist - Labour Party Leader’s Office, said the tax was still under development.
‘‘We are not at that stage of detail,’’ he said.