Govt Set To Delay Fuel Taxes To Appease Voters
May 8th, 2008
The Govt has decided to delay introducing a fuel tax to help cut the country’s greenhouse gas emissions until 2011 in a move largely designed to boost its short term political support. The tax, which was expected to add up to 8c a litre to the cost of fuel, was scheduled to be phased in from January next year. Helen Clark is defending the implemenation delay saying it will not have an adverse impact on cutting emissions as high world oil prices have already achieved a greater drop in petrol usage than a carbon charge or an emissions scheme could.
However, the drop in consumption is more good luck than good management and allows the Govt to focus on trying to win votes by taking the political heat out of rising fuel prices. Clark admits the rise was going to be unpopular. “The Govt is very conscious and I am very conscious of a lot of pressures on families and on businesses right now. Both families and businesses are impacted by high fuel prices… we are obviously looking at ways we can help reduce some of those pressures.”
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