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Petrol Excise Duty and Road Charges
Better New Zealand Proposal

Remove Road User Charges and Excise Duty on Petrol.
Finance new transport infrastructure through Infrastructure Bonds (50 years at 6%)

The idea that roads should be funded by Excise Duty was introduced in 1926. In 1926 car ownership was the privilege of the well off. Today every New Zealander uses the roads whether they drive a car or own a truck. Every product or service contains an element of road “use.”

Better New Zealand believes that the road system is like every other public good, the defence forces, the police service, the courts and the education system. It should be funded from the general taxation system.

Payment of road maintenance from the general tax system and new infrastructure from bonds will

Using Infrastructure Bonds to finance new capital expenditure on roads will:

Plainly needed long term infrastructure would include:

Better New Zealand believes the use of an anachronistic excise duty and a user pays philosophy to fund roads causes harm to many New Zealanders.

It distorts the economy. It needlessly impoverishes lower income, pensioners and beneficiaries.

Better New Zealand considers it's proposal to remove road user charges and Excise Duty on petrol will increase the disposable and discretionary incomes of those who cannot afford to pay a special road charge.

Who should pay for the roads?
Those who can.