The fuel excise portion includes:
In addition, GST is collected on the overall price of fuel including excise. The GST on excise amounts to a 8 cents per litre "tax on taxes".
There are no taxes on diesel other than GST. Instead, diesel vehicles pay Road User Charges. All fuels also pay an Emissions Trading Scheme charge (approximately 1 cent per litre).
It is now government policy for all of the petrol excise tax motorists pay to be directed to the National Land Transport Fund for investment back into New Zealand's road and transport system. The AA lobbied hard on behalf of motorists for many years to have all the taxes devoted to road building and maintenance, road safety education and enforcement, and subsidies for public transport.
Previously, about 19 cents per litre of the tax motorists paid on petrol was diverted by the government to non-road and transport related projects.
The AA welcomed the decision to pledge all excise tax to the National Land Transport Programme from July 2008. For far too long there has been significant under-investment in the nation's road and transport network, and tax diversion has been unfair and at the expense of motorists.
Motorists must not be selectively taxed or treated as an easy source of tax revenue to pay for projects that would be more fairly funded by other sources such as rates or general taxation.
We don't support regional petrol levies that unfairly target motorists to subsidise the transport decisions of others. The future funding of public transport must not be another tax on motorists added to current taxes and charges, but has to be independently justified in terms of defined benefits to motorists.