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qwerty7

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#101686 6-May-2012 17:50
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Did you know around 50% of the petrol price per litre is tax? Ontop of your income tax, car rego fees and everything else

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NonprayingMantis
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  #620579 6-May-2012 17:52
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yes. I did know that.



nakedmolerat
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  #620583 6-May-2012 17:57
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yes... I think few years back BP gave out flyers that shows what made up the price for 1 litre of petrol

alasta
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  #620585 6-May-2012 17:59
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Yes. Believe it or not roads are expensive to build.



Dingbatt
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  #620591 6-May-2012 18:16
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alasta: Yes. Believe it or not roads are expensive to build.


You don't think the excise from petrol has been spent only on roads for all these years do you? You've got to pay for the country to run somehow, so it's that or jack GST or personal and company tax even higher. At least the people who use the roads pay for them as well.
But wait there's more....... you will see in the not-to-distant future increasing numbers of toll roads. Supposedly to pay for the newly constructed roads that you thought your petrol taxes were paying for.

While you are on the subject of taxes don't forget local body rates, school fees and even medical insurance to cover what the public system can't hope to. And all of the above with GST added.




“We’ve arranged a society based on science and technology, in which nobody understands anything about science technology. Carl Sagan 1996


qwerty7

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  #620592 6-May-2012 18:18
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I know roads are expensive to build.

I also believe many tax dollars could be saved if government agencies were more efficient. 

I think many people wouldn't know 50% of the fuel price is tax. Then again i could be wrong. 

Oblivian
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  #620621 6-May-2012 18:55
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They also tax those taxes BTW.

GST slapped on at the end of it.

nickb800
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  #620624 6-May-2012 19:13
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Dingbatt:
alasta: Yes. Believe it or not roads are expensive to build.


You don't think the excise from petrol has been spent only on roads for all these years do you? You've got to pay for the country to run somehow, so it's that or jack GST or personal and company tax even higher. At least the people who use the roads pay for them as well.
But wait there's more....... you will see in the not-to-distant future increasing numbers of toll roads. Supposedly to pay for the newly constructed roads that you thought your petrol taxes were paying for.


I think you will find that the excise revenue from petrol is ring fenced for land transport. So you can be fairly certain that most of it iS being spent purely on roads, in some form (although some of it does go towards public transport, walking, cycling, im sure these are small compared with).

Of course the ringfencing of this may have freed up other government revenue from general taxation away from roads to other government expenditure, but that is an indirect effect.

 
 
 

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  #620633 6-May-2012 19:28
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I miss the days of 90c p/l of petrol :)




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DrCheese
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  #620663 6-May-2012 20:34
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xpd: I miss the days of 90c p/l of petrol :)


I remember it well. Second half of 1999.

I can also remember petrol at 14 cents per litre.

Cheers,

Old DrCheese.

sbiddle
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  #620666 6-May-2012 20:40
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qwerty7: I know roads are expensive to build.

I also believe many tax dollars could be saved if government agencies were more efficient. 

I think many people wouldn't know 50% of the fuel price is tax. Then again i could be wrong. 


Fuel companies and the AA have been trying to point this out every opportunity they've had, especially since our taxes on fuel are very low by OECD standards.


mudguard
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  #620667 6-May-2012 20:42
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I don't mind the tax. If they made it 10% the price would drop for a bit, then slowly eek it's way up again as the suppliers know we'll pay $2.36 for it.

And there won't be any revenue from it. I don't mind. Just drive less.

DrCheese
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  #620668 6-May-2012 20:44
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sbiddle:
Fuel companies and the AA have been trying to point this out every opportunity they've had, especially since our taxes on fuel are very low by OECD standards.


Most places I've been charge about $3 per litre. Exceptions are the US, Canada, and Australia.


sbiddle
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  #620670 6-May-2012 20:46
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DrCheese:
sbiddle:
Fuel companies and the AA have been trying to point this out every opportunity they've had, especially since our taxes on fuel are very low by OECD standards.


Most places I've been charge about $3 per litre. Exceptions are the US, Canada, and Australia.



In simple $ terms petrol isn't expensive compared to many other countries which is something many people tend to overlook. What is an issue however is the price compared to our average incomes and buying power.

DrCheese
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  #620672 6-May-2012 20:49
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sbiddle: In simple $ terms petrol isn't expensive compared to many other countries which is something many people tend to overlook. What is an issue however is the price compared to our average incomes and buying power.


Agree. Not much we can do about this in the age of globalization where if NZers don't buy a product, it'll be shipped overseas where someone will buy it.

I'm happy paying a higher price for petrol if it means roads are being built. Outside of Orc Land, that is.

Dr Cheese.

Dingbatt
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  #620703 6-May-2012 22:15
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nickb800:
Dingbatt:
alasta: Yes. Believe it or not roads are expensive to build.


You don't think the excise from petrol has been spent only on roads for all these years do you? You've got to pay for the country to run somehow, so it's that or jack GST or personal and company tax even higher. At least the people who use the roads pay for them as well.
But wait there's more....... you will see in the not-to-distant future increasing numbers of toll roads. Supposedly to pay for the newly constructed roads that you thought your petrol taxes were paying for.


I think you will find that the excise revenue from petrol is ring fenced for land transport. So you can be fairly certain that most of it iS being spent purely on roads, in some form (although some of it does go towards public transport, walking, cycling, im sure these are small compared with).

Of course the ringfencing of this may have freed up other government revenue from general taxation away from roads to other government expenditure, but that is an indirect effect.


Yes it is ring fenced now, which is why I said "all these years". Previous to the ring fence there was a thing called 'the consolidated fund' (I think) where all the revenue went. And then was subsequently doled out to run the country. All the years of petrol tax without it being re-invested in roading has meant we are now playing (and paying) catch up.

Ask boaties how they feel about paying road tax on the petrol they have to buy to power their craft. They use the specious argument that they go on the road sometimes (trailered) but so do household trailers, horse floats and pushbikes but none of them pay an excise (just a registration fee). End Rant./

Edit: changed a couple of words to sound a little less 'ranty'.




“We’ve arranged a society based on science and technology, in which nobody understands anything about science technology. Carl Sagan 1996


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