Regional fuel tax bill passes first reading

The first parliament reading of the Land Transport Management (Regional Fuel Tax) Amendment Bill took place this week. The law is expected to be passed in June, ready for a fuel tax to be put in place in the Auckland region from 1 July.

The Bill allows regions to apply for a regional fuel tax, initially for Auckland. The tax would be on petrol and diesel for a period of no more than 10 years.

A regional fuel tax would enable Auckland Council to generate an extra $170 million a year, funding vital infrastructure required to support a burgeoning population.

“Auckland can no longer afford to do nothing. We need to create a world-class transport system in our biggest city, with better infrastructure and a wider range of transport modes to choose from”, said Minister Twyford.

Under the Bill, Auckland Council must first consult with residents on the proposed projects it wishes to fund. It must then obtain Government approval before the regional fuel tax can be implemented.

The Bill will be referred to the Finance and Expenditure Select Committee, which will call for public submissions.

To read the Bill, please click here.