Budget confirms rise in petrol tax

Tax on petrol is to rise by 2c a litre from August, with a corresponding increase in Road User Charges, yesterday's Budget confirms.

The increases were raised as a possibility last July by former Transport Minister Steven Joyce after a scheduled 1.5c per litre increase was scrapped due to tight economic conditions.

Although there was no confirmation of the increase until yesterday's Budget, AA spokesman Mark Stockdale said it was not a surprise.

"It was deferred from last year and at the time it was suggested it was likely we would have a 2c increase in 2012. So the Budget announcement is in line with what was anticipated to meet inflationary costs in land transport funding.''

The petrol excise increase will raise an additional $55 million in the 2012/13 year and a total of $235m over the first four years.

The increased Road User Charges will raise $38m extra in year one and $186m over four years.

Last year Mr Joyce said a further 1.5c a litre increase in petrol excise was likely in the 2013/2014 financial year.

 

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