Fuel rebates unclaimed

A huge number of New Zealand businesses are missing out on receiving fuel duty refunds.

The NZ Industrial Fuel Duty Agency (NZIFDA) contacted businesses nationwide and on that survey reckons the number missing out on a legitimate refunds could be as high as 90 per cent.

Fuel excise duty is built into fuel costs to help with the upkeep of roads, and businesses which use fuel for off-road machines or in exempted vehicles are entitled to a refund. The agency contacted 5000 businesses and found only 10 per cent of those eligible were claiming the payback. It also reckons the average refund entitlement to be about $2000.

Now the NZIFDA is helping Kiwi businesses get some extra cash in their pockets. In January, the agency spent $120,000 in a three-month campaign to inform and assist businesses who are entitled to tax back on their fuel.

It said most businesses were not aware they were entitled to an off-road fuel duty refund.

So who is entitled to a refund?

You can get a refund of the excise duty and the GST charged on motor spirits that are used as fuel in an exempted vehicle, as fuel in a road user charges-licensed vehicle, as fuel in a commercial vessel, for search and rescue purposes in a dedicated rescue vessel or for commercial purposes other than as fuel in any motor vehicle, vessel, or aircraft.

In general, agricultural vehicles, some mobile machinery and commercial vehicles that don't travel on the road, are exempt vehicles.

The types of fuel eligible for a refund are motor spirits, CNG and LPG. But there are some fuels that do not qualify for a refund and these include any fuel used for a motor vehicle that's used principally in vehicle races, trials, or other sporting events; fuel used in recreational boats and pleasure craft; fuel that has already had excise duty refunded and diesel. But those making application for refunds need to be aware that the NZ Transport Agency's Crown revenue team carries out audits of claims and may refer claims to field audit officers to complete on-site inspections. Anyone making a claim needs to keep a copy of their records and forms for three years.

The NZTA can prosecute people submitting incorrect or fraudulent claims and impose a fine of up to $2000 on conviction. More information can be found online at www.nzifda.org.