National says it will repeal the petrol tax increase if it wins this year's election.
Motorists today woke up to higher petrol prices, thanks to a government tax aimed in part at easing traffic congestion in Auckland.
Politicians debated into the early hours of this morning as the Government pushed through urgent
legislation enabling it to fund its $227 million transport package.
Included was a 4.2 cent per litre petrol tax increase that became 4.7 cents a litre at the pump when GST was added.
That provides $190 million for the package over the next 16 months, with the other $37 million from increased road user charges (RUC) on diesel vehicles under four tonnes.
RUC charges are to increase from April 1.
National Party leader Bill English said last night the Government's transport package broke its promise not to bring in any new taxes.
"The Government will collect over $227 million in new petrol tax and every household and every business will have to foot the bill," he said.
He wanted to see Auckland's roading problems fixed but the Government did not need the new tax as it could use money from the petrol tax it already collected.
The Government had large surpluses and tax revenue was already several hundred million dollars ahead of budget.
"A National Government would repeal this petrol increase," Mr English said in a statement.
- NZPA
