Regional fuel tax

Transport funding package

The following documents are a suite of papers that recommended changes to improve land transport funding arrangements. They are:

• Transport Funding Package Overview (PDF v7.0, 2mb): This paper provided an overview of the following suite of papers that recommended changes to improve land transport funding arrangements.
• Replacement of regional fuel tax with increases to fuel excise duty and road user charges (PDF v7.0, 6mb)
• Confirmation of the commitment to transport infrastructure (PDF v7.0, 4mb)
• Amending the Government Policy Statement on Land Transport Funding 2009/10-2018/19 (PDF v7.0, 5mb)

The measures proposed in these three papers together:

• increase funding for State highways by almost $1 billion over the next three years
• replace regional fuel tax
• make a start on simplifying the management of rail infrastructure
• confirm the government’s commitment to rail electrification in Auckland

The Cabinet Minute of Decision (PDF, v7.0, 2MB) is also provided . 

A small amount of information has been withheld under the Official Information Act 1982. 

 Overview

On 16 March 2009, Transport Minister Steven Joyce announced that the government will not proceed with regional fuel taxes. Regional fuel taxes will be partially replaced by smaller increases in national fuel taxes.

For more information on the government's decision, read the Minister's announcement on the beehive website.

Regional fuel tax was to be a tax levied on petrol and diesel at a regional level. 

The tax would have been a way for regions to raise funds for specific transport capital projects that are a regional priority and which would not otherwise attract funding within the timeframe desired.