Proposed new fuel taxes unacceptable burden

Critics have condemned the “unacceptable” burden placed on New Zealand consumers by planned new fuel taxes and levies. Politicians and consumer advocates said regional fuel taxes and the planned emissions trading scheme would combine to place heavy costs on consumers, via increased petrol prices and power bills. Among them, the Land Transport Management Amendment Bill before Parliament would allow regional councils to levy a fuel tax of up to 10 cents a liter. And the Institute of Economic Research has estimated the carbon-emissions trading scheme will result in extra costs of NZ$600 (US$464) a year to households by 2012, rising to NZ$3,000-$5,000 (US$2,320-3,867) a year by 2025, depending on the international carbon price. She said the government had always said it would assist “vulnerable consumers” when they were hit with higher power bills as a result of the scheme. (May 7, 2008)