THE GOVERNMENT UNVEILS TRANSPORT PLAN ALONG WITH FUEL TAX INCREASE. Transport Minister David Parker, has released a draft Government Policy Statement concerning land transport consultation.
The draft statement proposes a record high increase in transport funding to $20.8 billion between 2024 and 2027.
The funding of this increase is set to include increases in petrol taxes and road user charges. The first set of petrol tax increases is expected to take place through an initial $0.02 per litre increase followed by another $0.02 per litre increase later in 2024. The cost of this initial $0.02 per litre increase to the average motorist is expected to be $0.44 cents per week.
Motorists can expect to see this increase to a $0.04 per litre increase in each 2025 and 2026. This brings the total increase over the proposed period to $0.12 per litre. Following this final increase, the average motorist can expect to pay an extra $2.64 per litre of tax at the pump each week.
It is expected that this increase in petrol taxes will generate a further $1.4 billion of revenue over the three-year period. The government plans to put the funds towards a major boost to road maintenance, new roading and public transport projects, as well as repairing cyclone damaged roads.