In what Transport Minister Chris Bishop has called the biggest change to how New Zealand funds its road network in 50 years, the government has announced its intention to abolish petrol taxes and replace them with electronic road user charges (RUCs) for all light vehicles.
Heavy vehicles, diesel-powered machinery such as utes and farm equipment, and electric vehicles already pay under an RUC system.
Motorists currently pay fuel excise duty of about 70 cents a litre at the pump, as well as GST on that amount, which people have long complained is a “tax on a tax.”
“For decades, petrol tax has acted as a rough proxy for road use, but the relationship between petrol consumption and road usage is fast breaking down,” Bishop explained….
New Zealand to Drop Petrol Taxes in Favour of Road User Charges
