AA Call For Drop In Petrol Tax But Eight Cents A Litre Is Nowhere Near Enough

The Automobile Association have issued a press release suggesting a drop in tax on fuel would be a good idea. This idea is raised every time fuel prices go up but I don’t recall the government ever agreeing to it.

As usual, the Automobile Association, that lame outfit that does only half of what it should to protect motorists from predatory government, is too timid in its demands in that they only suggest a drop of 8 cents. This is the GST on the excise tax and is therefore a tax on a tax. Whether this is any more immoral than any other tax is a debatable question. The real issue is that fuel is taxed at such an enormous rate its practically daylight robbery anyway.

Neither the explorer, the refiner, the distributor or the retailer makes anything like the money that the government makes from fuel. At no risk other than that of losing votes but as lame sheep-like NZers are always happy to vote for high taxes, this risk is negligible. At present prices the government collects about 88 cents a litre, with 62 cents in excise tax and 26 cents in GST.

The excise supposedly goes into road funding but I doubt its used effectively there. Of course they still demand we pay tolls and other road user charges as well. The remaining 26 cents is probably just wasted like the bulk of the round $60 billion English collects. It always amuses me that the left are happy to apply the user pays in respect of roads but go spare if you suggest the same in education or health.

There is no way we’re ever going to get any kind of real tax relief on petrol or anything. These incompetent over spending debt addicted losers we call politicians have destroyed our country and won’t stop until we’re destitute. Sure, tax on petrol should be cut, and everything else, as it is tax that is damping our economy. But we’re governed by a group of Keynesian socialists and the voters are mostly cut from the same jib. We’re going down, and we’re going to go right down. Cutting the tax on petrol is like bailing the Titanic with an egg cup. Right now, petrol should be tax free, and so should so many other items flowing likewise down the economic arteries of our country. It won’t happen until we bottom out at the end of the socialist spend and borrow cycle.

8 thoughts on “AA Call For Drop In Petrol Tax But Eight Cents A Litre Is Nowhere Near Enough

  1. Excise tax isn’t a user pays system in that it costs the same per km to use an empty country lane at 2.00 in the morning as it does to use Spaghetti Junction at 8.30 on a Monday morning… Apart from congestion there is no disincentive to use roads very inefficiently, it costs us masses in productivity…

    The 62c goes straight into the NLTP where it is used for 100% of SH construction costs, 50% of local road construction costs, 50% of public transport construction and running costs – and because of the lack of a free market in transport generally very poorly spent…

    I wouldn’t agree with removing GST off gas for the same reason I disagreed with Goff wanting to take it off vegetables, it only works well when applied universally…

    What we should do is remove the excise tax (and the 8c of GST that goes with it) for a 70c per litre reduction and run the road system as a private enterprise, Fonterra’s road vehicle tracking system shows how this could be done easily…


  2. Just for the record, the tax system I support is a poll tax. Where X is the amount required to govern the country, and Y is the number of citizens considered liable for tax, and tax is paid in an annual cheque which amount is arrived at by dividing X by Y.


  3. I think that’s a good system, the Fair Tax Act in the USA is okay too…

    I think you could write a Constitution that limits government to certain core functions and caps base spending at a % of GDP…


  4. Yep, all pretty good, except that GDP is a farcical way measuring economic activity. There has to be a better way of benchmarking. If government had clear legislative limits on what it could do, we could of course just pay for that. The real problem is at the moment there is nothing that binds the government firmly to a set of specific tasks. Hence we have the complete lack of restraint evident over the last few decades and continuing today. Its difficult to be sure that a Constitution would bring the required restraint. It really has to start in the minds of the people.


  5. Well restraining government is why I feel the need for a GDP cap, you could just right a Constitution that limits government spending to the Courts, Police (handling Immigration and Intelligence issues), Corrections, the Armed Forces and Civil Defence but without that strict limit it would only be 100 years or so before the government/courts would be trying to redefine what corrections or policing means…

    It really has to start in the minds of the people.

    Yeah, you hit the nail on the head, if the next 30 years goes the way the last 30 have, a real option has to be for a rich prick (hopefully me) to buy a large island/strip of land and give it away to any and all from the 100,000,000 or so people who understand freedom left who want to come, buy a boatload of guns and declare independence with a new and improved US Constitution – maybe the Libertarians will get there first…


  6. “maybe the Libertarians will get there first…”

    I hope not. I really wouldn’t want to live on an island with such a bunch of preaching pontificating Randists and homosexuals. It would be enforced attendance at the divine and holy church of Objectivism morning noon and night. 🙂


  7. There’s nothing for it, guys, except a benevolent dictator; One not subject to human temptations and foibles.
    Apparently there’s a candidate waiting in the wings …

    I guess until then we’ll just have to stick to Capitalism/Democracy subject to Judeo-Christian principles as being the BEST system we’ll ever come up with.

    The quote you mentioned the other day, Red, perhaps best embodied this:

    “We have no government armed in power capable of contending with human passions unbridled by morality and religion. Our Constitution was made only for a religious and moral people. It is wholly inadequate for the government of any other.”
    John Adams (1735-1826) Founding Father, 2nd US President, October 11th, 1798. Address to the military.


  8. It would be enforced attendance at the divine and holy church of Objectivism morning noon and night.

    I can imagine it now, “you want to give how much to your Church? But have you not heard? Prophet Rand told us there is no God and selfishness is good!”


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