Draft legislation for the proposed regional fuel tax was introduced to Parliament late last week, (Land Transport Management (Regional Fuel Tax) Amendment Bill (38-1)) and is expected to be passed in June with an implementation date from 1 July 2018.
The purpose of the fuel tax is to establish a mechanism to gather funding for regional transport infrastructure programmes that would otherwise be delayed or not funded.
The fuel tax will:
- apply to both petrol and diesel (but not CNG or LPG)
- be collected at the distributor level
- be used toward the funding of capital expenditure on transport infrastructure programmes
- have a maximum rate of 10 cents per litre of fuel
- be subject to GST
- have a maximum duration of 10 years, subject to renewal
- apply initially only to the Auckland region
- be available to other regions from 1 January 2021
- go to the regional council in the region where the fuel is sold
- allow for rebates for off-road use.