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.