Petrol tax increases

Press, 12 April 1979, Page 21

Petrol tax increases

PA Wellington The Government has started to .ake an even bigger tax nite from the money that motorists pay for their petrol. In a little-publicised move, the G>>\ernment has increased its share of petrol income oy 0.75 c a litre, directly at the expense of he National Roads Board. - The Government is now receiving 8.45 c of the 31.6 c that is paid for every litre of petrol. Previously, it took a tax bite of 7.70 c To make way for the increase Government share. the board’s allocation has dropped from 5c to 4.25 c. The change around came as a result of a

regulation, approved by the Government last week, which took effect on April 8. Even though the board will suffer a drop of millions of dollars in its income from petrol sales, the Government will make it up from other areas. Income from road-user charges will, for example, rise. The board has been guaranteed a spending budget of $l7O in the current financial year, and the Government will ensure that sum is available. Nevertheless, the change means that the tax slice to the Consolidated Revenue Account from petrol sales is continuinb to rise. Before last Sunday, the Consolidated Revenue

Account took 24.4 per cent of petrol costs. Now it accounts for 26.7 per cent. When the board take is added, plus the allocation to local authorities and the slice to the liquid fuels trust acct uni, taxes account for 42.6 per cent of the cost of pet’ol The allocation of o.lc a lit>e to Me '.quid fuels trust account helps fund ■csearch into alternative fuels, such as natural gas and liqu? ! ied petro cum gas. Other recent changes to the oetro' cost structure mean that 8.9 per cent goes to the service staiion (2.82 c a lire), and 48 5 per cent tn 'he oil companies (15 32c a litre). An application has been lodged by the oil companies for an increase.