Tax rise tags diesel drivers

By AUDREY YOUNG

Nearly 400,000 people who own diesel-powered cars and utilities will have to pay more in road user charges.

And the smallest vehicles will be hit hardest.

The new charges, which will result in diesel motorists paying between $3.48 and $8.20 per 1000km more will come into force on April 1 as part of the Government's new land transport plan.

The $227 million plan - which will cost motorists an extra $175 million a year - also immediately increases the price of petrol by 4.7c a litre.

The money raised will all be spent on roading and transport.

Among the hardest hit will be more than 377,000 light diesel vehicle owners, who will pay between 14 per cent and 57 per cent extra in road user charges.

The biggest increase is a 57 per cent increase in road user charges for owners of 1 tonne diesel-powered vehicles.

That equates to $8.20 per 1000 kilometres, but only 2138 vehicles are affected.

The biggest group affected are the 255,767 owners of two-tonne diesel vehicles, who will pay a 34 per cent increase or $6.28 more per 1000km.

Petrol goes up immediately to meet the rise in excise of 4.2c a litre or 4.7c with GST included.

The rise was rushed through Parliament last night.

It takes the standard cost of 96-grade petrol from $1.04 a litre to $1.09.

The cost of 91-grade will rise from 99c a litre to $1.05c.

Transport officials say the extra tax will cost an average family $70 more a year.

All the extra revenue - including the GST - would be allocated to transport-related spending, said Finance Minister Michael Cullen.

Transport Minister Mark Gosche said the spending would include $94 million on roading, most of it in Auckland.

Road safety would get $34 million, which would pay for more t police officers but not necessarily more speed cameras.

Another $30 million would go on alternatives to roading, $36 million on public transport assistance and $3 million on walking and cycling projects.

Some rural people were upset at the size of the increases, and the fact that much of the money would be spent on Auckland roads.

David Michaels of Burwood Farm in Waiotira south of Whangarei said he was expecting a tax increase, but was surprised by its severity.

"I don't know why they don't put a tax on Aucklanders," he said. "I'm darned if I know why I should have to pay a tax that will benefit Auckland."

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