Otago Daily Times

Fuel tax opposed, safety supported

- SOPHIE BOOT

WELLINGTON: Most people do not want to pay a new fuel tax but do want the Government to make roads safer and increase access, a survey funded by Chartered Accountant­s Australia and New Zealand (CA ANZ) has shown.

The Government is proposing to raise petrol excise by between 9c and 12c a litre over the next three years, alongside the 11.5c per litre regional fuel tax in Auckland likely to begin from July.

The survey of 750 people, conducted by Ipsos for CA ANZ, showed that 49.6% of respondent­s wanted improvemen­ts to roading to come from the current land transport budget, with less money spent on other projects, CA ANZ said.

Some 36% thought it should be funded from general taxation, 25% said funding should come from other sources such as congestion charges, regional fuel taxes or tolls, and 14% supported an increased fuel tax. Nine percent of respondent­s said they disagreed with the Government’s goal of improving roads. The percentage­s add up to more than 100% because respondent­s could select multiple answers.

Respondent­s were more positive about the Government’s $1 billion provincial growth fund, where 45% were in favour of the spending, 21% opposed, and 34% not sure.

Most respondent­s believed they were paying the right amount of income tax, at 59%, with 34% believing they should pay less, and many supported increasing or introducin­g other taxes. A total of 44% of respondent­s supported capital gains or wealth taxes, 31% said excise taxes such as those on alcohol, tobacco and fuel should rise, 30% thought company tax should be increased, 24% were in favour of environmen­tal taxes, while 29% of respondent­s said no taxes should be increased or introduced.

CA ANZ tax lead for New Zealand, John Cuthbertso­n, said this was nimbyism, with just 4.3% of respondent­s in favour of lifting GST.

The Government has said that the ‘‘family home’’ will not be subject to capital gains tax, meaning most people will not be affected, Mr Cuthbertso­n said.

‘‘Our company tax rate, at 28%, is already above the OECD average and there are signs you can only go so far with some excise taxes such as tobacco, and it seems judging by the results of our survey, fuel tax.’’

The average combined corporate tax rate in the OECD is 23.9%, according to data from the organisati­on’s website. — BusinessDe­sk

Newspapers in English

Newspapers from New Zealand