Auckland fuel tax ending, PM Christopher Luxon, Transport Minister Simeon Brown announce

The Auckland regional fuel tax is ending, Prime Minister Christopher Luxon and Transport Minister Simeon Brown have announced.

The pair made the announcement in Auckland’s central suburb of Parnell this afternoon, saying the tax was not being used to fund projects that met the Government’s and mayor Wayne Brown’s transport priorities.

The tax is due to come to an end by June 30. Brown said legislation would be introduced to Parliament to repeal the tax as part of the coalition Government’s 100-Day Plan.

“Since 1 July 2018, Aucklanders have faced an additional 11.5 cents per litre tax on fuel, over and above what the rest of the country pays, increasing the cost of living at a time when they can least afford it. Ending this tax is one way to reduce the price of fuel and ease some of the financial pressure facing households in our largest city,” he said.

“Removing this extra tax of 11.5 cents per litre on petrol and diesel means the driver of a Toyota Hilux will save around $9.20 every time they fill up, while a Toyota Corolla driver will save around $5.75.

“Fuel tax is becoming an increasingly regressive form of taxation and costs people on lower incomes with less fuel-efficient vehicles more than those who have newer more fuel-efficient vehicles. We intend to fully remove the legislative framework for regional fuel taxes.”

However, Auckland mayor Wayne Brown has expressed concern that Aucklanders will miss out on major road and public transport improvements because of the fuel tax cancellation.

He acknowledged the National Party campaigned to repeal it, but this decision will have unintended consequences unless the Government is prepared to foot the bill for upcoming transport projects.