Petrol taxes ‘hurting the poor’
Fuel taxes are taking food off the table for the poor, as they hit low-income families the hardest, an anti-poverty group says.
Auckland Action Against Poverty (AAAP) said fuel taxes introduced by the Labour-led Government and Auckland Mayor Phil Goff were disproportionately affecting the poor.
The comments come as motorists feel the sting of regular petrol reaching $2.40 a litre in some parts of Auckland after Goff introduced an 11.5c a litre regional fuel tax to boost spending on transport. Next month, the Government introduces a 4c a litre excise tax nationwide and two more planned increases will take that extra tax to about 10c a litre.
AAAP co-ordinator Ricardo Menendez-March said: “A lowincome family, living in a public transport-deprived area and dependent on an old vehicle to get around, will be paying a higher proportion of their income towards fuel compared to a family living in an area that already enjoys a greater degree of public transport and proximity to schools and workplaces.
“Solutions to traffic should never have to deprive low-income families of their ability to move around or put food on the table.”
His comments mirror a report last month from the Independent Ma¯ori Statutory Board (IMSB) showing annual fuel cost increases could be as much as $366 for lower-income households, and an additional $452 if the fuel efficiency of low-income households’ vehicles was considered.
Menendez-March said the fuel taxes were funding much-needed public transport projects but they did not address geographical inequities that have pushed Ma¯ori, Pasifika and migrant communities to the south.
“The beautifully rendered pictures of young professionals cycling that accompanied the Government’s medium-density housing projects often exclusively portray higherincome neighbourhoods such as Grey Lynn and Mt Eden.”
Spokespeople for Transport Minister Phil Twyford and Goff said they would not comment on the AAAP remarks. Last month Twyford said the IMSB report did not take into account the Families Package introduced in July that gave 384,000 lowincome families with children an average of $75 extra per week.