Petrol Tax Will Fund Rail in NZ

November 22, 2017 Taxation in New Zealand

petrol taxAUCKLAND – Drivers in New Zealand’s biggest city will soon pay more for petrol, with the extra cots being used to pay for a rail network in the city.

The government of New Zealand will soon implement the first regional fuel tax in the country, according to a statement made by a spokesperson for the national Minister of Transport Phil Twyford.

The Minister of Transport indicated that a tax of NZD 0.10 per litre will be applied to the sale of petrol in commercial petrol stations anywhere in the Auckland region.

The current mayor of Auckland Phil Goff has called on the government to pass the revenues from the tax to the Council.

The funds passed to the Council would be used to pay for improvements to the city’s transport infrastructure.

In particular, the tax would go towards paying for light rail networks within the city, and towards new and expanding areas of the city, and towards the city’s airport.

It is expected that over the first 10 years of the tax being enacted, the system could raise as much as NZD 1.45 billion towards the light rail projects.

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