Friday, December 29, 2006

Government plans new way to tax car drivers

All motorists would be charged for the distance they travel under a plan designed to replace petrol taxes.

The Government is worried that its petrol tax income will fall as climate change concerns produce vehicles which are more fuel-efficient or use alternatives to petrol.

As reported in the hearld today.Seems reasonable yes? waht other motives could there be?.

We predicted here in May of the change in strategy and the introduction of a carbon tax by defacto means

The IEA says

It is disappointing that the government has decided not to proceed with its planned carbon tax for some sectors of the economy, as incorporating a carbon price signal into the market is a cost-effective means of reducing GHG emissions. Following on this decision, the government is considering other options, including in the short term a more narrow carbon tax and in the longer term other measures. The government should also consider policy options beyond a revised carbon tax, including an emissions trading scheme linked to international markets.

The IEA recommends .

1 Outline a budget and plan for international actions to meet New Zealand’s projected Kyoto Protocol shortfall, and implement the plan as quickly as possible.

2 Consider implementing a carbon tax or emissions trading – or a combination
of the two – as quickly as possible.

3 Address CO2 emissions from the transport sector through appropriate fiscal and regulatory measures.

One of my researchers in Europe said that the Carbon tax will be introduced under another name for transport.The government told the IEA that this will alleviate political problems as the shortfall in the mineral fuels tax for road funding can be used as a de facto Road transport carbon tax.

Various prebudget costing scenarios for an increase in the Mineral fuels tax and road user levies from the shortfall of 5% to an increase of 15% as well as inflation indexing are with treasury.

In addition the changes of registration fees for differing vehicle CC and fuel economy ratings is to be introduced.

I was preemptive in the budget prediction as the treasury costings had not been done and the CC strategy was not completed,the outcome is however unchanged.


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